Automotive
Car loan
Estimate monthly payments, the amount financed and interest on a fixed-rate car loan.
Calculators / Finance / Cash back versus low interest
Cash back versus low interest calculator
Compare an immediate cash rebate with a lower-rate loan offer.
On this page
Payment with rebate454.32
Payment with low APR438.19
Total-cost difference967.61
Calculator controls
How to calculate
Compare an immediate cash rebate with a lower-rate loan offer.
Payment with rebate = (price-down-rebate)*(standardApr/1200)/(1-(1+standardApr/1200)^(-months)); Payment with low APR = (price-down)*(lowApr/1200)/(1-(1+lowApr/1200)^(-months)); Total-cost difference = ((price-down-rebate)*(standardApr/1200)/(1-(1+standardApr/1200)^(-months))*months+down)-((price-down)*(lowApr/1200)/(1-(1+lowApr/1200)^(-months))*months+down)
Worked example
Purchase price: 30000; Down payment: 5000; Cash rebate: 1500; APR with rebate (%): 6; Low promotional APR (%): 2; Term (months): 60.
Payment with rebate: 454.32 ; Payment with low APR: 438.19 ; Total-cost difference: 967.61 .
Assumptions and limits
Taxes, fees and eligibility can change each offer. A negative difference means the rebate scenario costs less under these inputs.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Compare an immediate cash rebate with a lower-rate loan offer. The displayed figures use the inputs and formula shown on this page.
When this tool is useful
Use the cash back versus low interest to compare a scenario, check an estimate, or verify a manual calculation.
Understanding your inputs
| Input | What to enter |
|---|---|
| Purchase price | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Down payment | Enter a number of at least 0 and no more than 1000000000000. |
| Cash rebate | Enter a number of at least 0 and no more than 1000000000000. |
| APR with rebate (%) | Enter a number of at least 0.000001 and no more than 100. |
| Low promotional APR (%) | Enter a number of at least 0.000001 and no more than 100. |
| Term (months) | Enter a number of at least 1 and no more than 1200. |
Frequently asked questions
What should I check before using the cash back versus low interest result?
Taxes, fees and eligibility can change each offer. A negative difference means the rebate scenario costs less under these inputs.
Is this cash back versus low interest result exact?
It is exact for the stated mathematical model and entered values. Real-world results can differ when rates, timing, fees, definitions or measurement conditions differ.