Cash Back or Low Interest Calculator
Compare cash back rebates versus low-interest financing to find the better auto deal.
Results
What is a Cash Back or Low Interest Calculator?
This calculator compares two common auto dealer incentives: a cash rebate with standard financing versus no rebate with a below-market interest rate. It tells you which option costs less over the life of the loan.
How to Use This Calculator
- Enter the vehicle's negotiated price.
- Input the cash back rebate amount.
- Enter the low promotional interest rate.
- Enter the standard interest rate you qualify for.
- Choose the loan term in months and click Calculate.
Frequently Asked Questions
Which is better: cash back or low APR?
It depends on the rebate size, rate difference, and loan term. Higher rebates and longer terms tend to favor the cash-back option. This calculator runs the numbers for you.
Can I take the rebate and the low rate?
Usually not. Manufacturers typically offer either a rebate or a special low rate, not both. Read the offer details carefully.
Does the calculator include sales tax and fees?
No. This calculator focuses on financing comparisons. Add tax and fees manually to both scenarios for a complete picture.
What if I pay cash instead of financing?
If you pay cash, the rebate is almost always the better choice because you avoid interest entirely. This calculator is for buyers who plan to finance.