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Cash Back or Low Interest Calculator
Dealers often offer either a cash rebate or a low interest rate. This calculator compares the two so you can see which costs less overall.
Rebate vs Low Interest
Compare a cash back rebate with a low-interest financing offer
Cash Back Offer
Low Interest Offer
Rebate is Better
By $0 over the term
Rebate Monthly Pmt
$0
Low Int. Monthly Pmt
$0
Total Cost Comparison
Dealers present it as a choice: take the cash rebate, or take the low interest rate — rarely both. The better deal depends on the loan size and term. This calculator prices both offers to the end of the loan so the winner is obvious.
How to use this calculator
- Enter the car price and the loan term you plan to use.
- Enter the cash-back amount and the standard interest rate that goes with it.
- Enter the special low interest rate offered instead of the rebate.
- Press calculate to see the total cost of each option and the saving.
The usual pattern
On small loans and short terms, the rebate usually wins, because there is little interest to save. On large loans over long terms, a very low rate can outweigh a generous rebate. Your own bank or credit union rate is a useful third option to test as well.
Frequently asked questions
Can I take both the rebate and the low rate?
Sometimes, on certain models or at month-end, but offers are normally either/or. Ask the dealer to price both combinations in writing.
Does a down payment change the answer?
It shrinks the loan, which shrinks the value of the low rate, so the rebate becomes relatively stronger. Run the numbers with your real down payment.
What about 0% APR offers?
They are the extreme case of the low-rate side. Compare carefully: you usually give up the rebate, and approval needs strong credit.