Compare a rebate with a low-interest financing offer on the same vehicle. See which costs less over the full term and how the monthly payments differ.
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Check your inputs—Complete valid inputs to calculate a current result.
$
0 – 1000000000000
$
0 – 1000000000000
$
0 – 1000000000000
% / year
0 – 100
% / year
0 – 100
months
1 – 600
%
0 – 100
$
0 – 1000000000000
Lower total cost over the full term
Low-interest offer
Total savings with the cheaper offer$604.23
Monthly payment with rebate$483.32
Monthly payment with low interest$473.25
Same vehicle, down payment and loan term
Cost
Cash rebate
Low interest
Financed amount
$25,000.00
$27,000.00
Sales tax
$0.00
$0.00
Monthly payment
$483.32
$473.25
Total interest
$3,999.20
$1,394.97
Down payment + all loan payments
$31,999.20
$31,394.97
The rebate reduces the purchase price; it is not an additional cash payout. Assumes fixed rates, monthly payments, and no early payoff, trade-in, negative equity, or different fees between offers. Check the rebate tax treatment for your transaction.
For each offer: M = P × r / [1 − (1 + r)^−n], where r is annual interest ÷ 1200 and n = 60. At 0% interest, M = P ÷ n.
Compare $31,999.20 with $31,394.97 over 60 months.
Compare the same purchase under two offers
The cash-rebate offer subtracts a rebate from the purchase price and applies its own loan rate. The low-interest offer keeps the full purchase price but applies the promotional rate. Both use the same down payment, term and financed fees.
The comparison shows financed principal, monthly payment, total interest and total outlay. A smaller monthly payment and a lower lifetime cost are separate questions, although equal terms make the comparison easier.
The payment calculation
For financed principal P, monthly rate r, and n payments, M = P × r / [1 − (1 + r)^−n]. At a zero rate, M = P / n. Total outlay is the down payment plus all monthly payments.
A simple zero-interest example: a 30,000 vehicle, 3,000 down payment and 2,000 rebate leaves 25,000 to finance. Over 60 months this is about 416.67 per month. Without a rebate, 27,000 over the same zero-interest term is 450 per month, so the rebate saves 2,000 in total. Calculations retain unrounded payments internally.
Taxes, fees and exclusions
Choose whether the rebate reduces the taxable price. Tax treatment varies; the setting is an assumption you supply, not a jurisdiction lookup. Fees are added to both loan balances and the same down payment is used for each.
This comparison assumes fixed rates and full-term monthly repayment. It does not model trade-in credits, negative equity, early payoff, add-ons, different offer-specific fees, or the investment return on cash. Use the quoted interest rate, not a fee-inclusive APR with the same fees also entered separately.
How to use the Cash Back or Low Interest Calculator
Compare a rebate with a low-interest financing offer on the same vehicle. See which costs less over the full term and how the monthly payments differ.
Enter the purchase and rebate
Use the vehicle price, common down payment and rebate amount.
Compare the financing terms
Set the two rates, common loan term, financed fees and applicable rebate tax treatment.
Review full-term cost
Compare payments, interest and total outlay; download the comparison table if useful.