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About the Cash Back or Low Interest Calculator
This calculator compares a cash back rebate against a lower interest rate on a car loan. It computes the monthly payment and total cost for each option. You get a side-by-side result showing which offer costs less.
The monthly payment uses the standard amortization formula P x r x (1+r)^n / ((1+r)^n - 1), and the calculator sums all payments for both offers. Inputs include the vehicle price, down payment, loan term, rebate amount, and the APR tied to each offer. It also accounts for the rebate reducing the financed amount. If you plan to pay off the loan early, cash back often wins because the low rate has less time to save you money.
- Enter the vehicle price, your down payment, and the loan length in months.
- Enter the rebate amount and the APR for each offer.
- Compare the total cost for both offers and choose the lower one.