Cash Back or Low Interest Calculator
Decide between a cash-back rebate and a low-interest offer on a car loan by comparing their total cost.
Change the values and press Calculate to work out your own figures.
Enter both offers and the car's price, term and costs.
Show the working
- compare interest less the rebate with the low rate's interest
How to use it
Enter both offers and the car's price, term and costs.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
total cost = price + interest + tax + fees − rebate
Questions
Is $1,000 cash back at 5% better than 2% financing on a $50,000 car?
No: the low rate saves about $2,092 over 60 months.
Formulas
total cost = price + interest + tax + fees − rebate
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.