Cash Back or Low Interest Calculator
When buying a car, compare a manufacturer cash-back rebate against a lower-APR financing offer to find the better deal.
How to use the Cash Back or Low Interest Calculator
- Enter your inputs into the Cash Back or Low Interest Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The cash-back vs. low-APR comparison
Cash-back option: Total = (Price − rebate) financed at market rate · · · Low-APR option: Total = Price financed at promotional rate
Both options reduce the price you pay over the life of the loan, but in different ways. The right answer depends on the loan amount, term and rate spread.
Worked example
A $32,000 car with $2,000 cash back at 7% APR over 60 months: payment $594, total $35,624. The same car with 0% promotional APR (no rebate): payment $533, total $32,000. Low-APR wins by about $3,600 here.
Frequently asked questions
When does cash back win?
Cash back generally wins on short loan terms, smaller principal, when you have excellent credit and can get a good rate elsewhere, or when the rebate is large relative to the financed amount.
When does low APR win?
Low APR generally wins on longer terms, larger loans, and when the rebate is small. The longer the loan, the more the interest savings compound.
Can I get both?
Rarely — manufacturers usually require you to choose one or the other. Some dealers offer additional rebates that stack with promotional financing, so ask explicitly.