Compare the real cost of two car financing offers. See whether a manufacturer rebate or a lower interest rate is likely to save more over your loan term after accounting for taxes, fees, your down payment, and trade-in.
Enter all amounts in the same currency. Currency selection formats results only and does not convert values. Tax rules vary by location, so choose how the rebate is taxed to match your purchase terms.
Which offer costs less?
Cash-back offer
Low-interest offer
The total deal cost includes vehicle price, sales tax, fees, loan interest, and the rebate.
Payment schedule comparison
Compare the remaining balance and payment for each offer month by month.
| Month | Cash-back payment | Cash-back balance | Low-rate payment | Low-rate balance |
|---|---|---|---|---|
| Compare offers to create both schedules. | ||||
Cash rebate or low-interest financing: how to compare
A car rebate reduces the price used to finance the vehicle. A lower interest rate reduces the finance charge over the loan term. The better offer depends on the rebate amount, the rate difference, loan length, taxes, fees, and how much you finance.
How does this calculator decide which offer is better?
It estimates the loan payment and total interest for each offer, then compares the total deal cost: negotiated vehicle price, sales tax, fees, loan interest, minus any rebate. It also estimates a break-even rebate at the higher interest rate.
Why does the sales tax treatment of the rebate matter?
Tax rules differ by location and transaction. In some places tax is calculated on the full price before the rebate; elsewhere the rebate may reduce the taxable amount. Select the option that matches the dealer’s written offer or local rules.
What is included in cash due at purchase?
This estimate includes your cash down payment and any sales tax or fees that are not financed. Trade-in value reduces the amount financed and is shown separately in your inputs.
Can I use the calculator outside the United States?
Yes. Choose a display currency and enter the tax rate, fees, and offer terms that apply to your transaction. The currency selector only formats the numbers; it does not convert currencies or apply country-specific tax rules.
What should I verify before choosing an offer?
Confirm the negotiated vehicle price, rebate eligibility, qualifying credit requirements, the rate duration, fees, tax basis, and any early-payment conditions in writing. This calculator assumes the rate remains fixed for the full loan term.
Related calculators: Auto Loan Calculator · Auto Lease Calculator · Browse financial calculators