A familiar situation
A car dealer may offer either a rebate or a lower financing rate. Compare both on the same loan amount and term, including any fee, before choosing the promotion with the lower total cost.
How to use this calculator
- Enter amount financed, apr with rebate, apr with low-rate offer and the remaining inputs.
- Select Calculate to see the answer and its breakdown.
- Keep a scenario, change an input and compare the results.
Use consistent units and check the assumptions below before applying the result.
How cash back or low interest is calculated
Both offers are compared across the same entered payoff period, and the new offer’s stated fee is included in its balance. A different term or fee treatment can change which option costs less. Formula: Compare rebate against the difference between amortized interest costs at both APRs. Use the displayed details to inspect the intermediate amounts and replace example assumptions with terms from your own quote or records.
Compare rebate against the difference between amortized interest costs at both APRs.A rebate is more valuable when its amount exceeds the interest saved by the lower-rate offer.
Assumptions & useful context
Positive advantage favors the low-rate offer; assumes both loans run for the full entered term.
Financial projections use your assumptions. Actual returns, lender terms, fees and tax rules can differ; these results do not guarantee a future outcome.
Frequently asked questions
Cash Back or Low Interest Calculator: what does the result include?
The current and new offers use the same payoff period. The new balance includes the entered fee where the screen says it is financed; the rebate tool treats its amount as a credit.
Cash Back or Low Interest Calculator: which assumptions matter most?
No. Compare total payments, fees and the time until the debt is cleared. A longer term can reduce the payment while increasing total cost.