Cash Back or Low Interest Calculator
Auto manufacturers may offer either a cash-back rebate or a low interest rate with a car purchase. Very often, these offers are mutually exclusive. Use the calculator to find out which of the two is the better offer. Tax and fee procedures apply to car purchases within the U.S. only. The calculator can still be used in other countries, but please adjust the inputs accordingly. For more information about or to do calculations involving auto loans instead, please use the Auto Loan Calculator.
Modify the values and click the calculate button to use
Cash Back Offer
Low Interest Rate Offer
Other Information
Cash Back or Low Interest Calculator
Compare Auto Financing Offers to Find the Best Deal
When purchasing a car, manufacturers often provide incentives—either a cash-back rebate or a low-interest financing offer. However, these promotions are usually mutually exclusive, meaning you must choose one or the other.
This calculator helps you determine which option saves you more money by comparing:
✅ Cash Back Offer – A lump-sum discount applied to the purchase price, but with a higher interest rate.
✅ Low Interest Rate Offer – A reduced APR on your auto loan, lowering your monthly payments and total interest paid.
How It Works
- Enter the Cash Back Offer details (rebate amount & higher interest rate).
- Enter the Low Interest Offer details (special promotional APR).
- Fill in your loan terms (car price, down payment, trade-in value, loan duration, etc.).
- Click “Calculate” to see which option saves you more money.
Key Features
- Detailed Cost Breakdown – Monthly payments, total interest, taxes, and fees for both options.
- Side-by-Side Comparison – Easily see which offer is better based on your inputs.
- Adjustable Inputs – Modify loan terms, trade-in values, and state taxes for accurate results.
Who Should Use This Calculator?
- Car buyers deciding between cash back vs. low APR offers.
- Shoppers comparing dealership financing incentives.
- Anyone looking to minimize total loan costs when purchasing a vehicle.
Note: While this calculator is designed for U.S. auto purchases (including state taxes and fees), it can be adapted for international use by adjusting the inputs accordingly.