Cash Back or Low Interest Calculator

Compare taking a dealer cash-back rebate (and financing at the regular rate) versus a low-interest financing offer.

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Deciding between a cash-back rebate and a low-interest financing offer on a new vehicle? Our free calculator compares both options side by side so you can see which one actually saves you more money over the life of the loan.

How It Works

This calculator computes the total cost of financing under each option: the rebate scenario (vehicle price minus rebate, financed at the standard/higher rate) versus the low-interest scenario (full vehicle price, financed at the promotional lower rate). It compares total interest paid and monthly payment under each path so you can see the real dollar difference.

How to Use This Calculator

  1. Enter the vehicle price
  2. Enter the cash-back rebate amount offered
  3. Enter the standard interest rate (typically used if you take the rebate)
  4. Enter the promotional low interest rate (typically used if you skip the rebate)
  5. Enter your loan term
  6. Click Calculate to compare total cost under both options

Frequently Asked Questions

Is the cash-back rebate always the better deal?

Not necessarily. On longer loan terms or larger loan amounts, the interest savings from a low promotional rate can outweigh the upfront rebate, run both numbers before deciding.

Why would a dealer offer either option?

Manufacturers typically offer these as alternative incentives, and often you must choose one or the other, not both, since the low rate is usually only available if you decline the cash rebate.

Does my credit score affect which option is better?

Yes, promotional low rates often require excellent credit to qualify; if your rate would be higher than advertised due to credit history, the cash-back option may become more attractive.

Should I still negotiate the vehicle price if taking the rebate?

Yes, the rebate is separate from price negotiation, always negotiate the vehicle's price first, then apply whichever incentive works out best for your financing situation.