Auto Rebate vs. Low Interest Financing Calculator
Use this calculator to help you determine whether you should take advantage of low interest financing or a manufacturer rebate.
How the auto rebate vs. low interest financing calculator works
It builds two deals: the cash rebate (which lowers the amount financed but at the standard rate) and the promotional low rate (full price, cheaper interest). It amortizes both and compares total cost so you can take the one that truly costs less.
Worked example: with vehicle price of $35,000, down payment of $3,000 and cash rebate of $3,000, the auto rebate vs low interest financing calculator shows cheaper option of Take the low rate.
- Rebate — payment
- $574.23
- Rebate — total cost
- $34,454
- Low rate — payment
- $573.58
- Low rate — total cost
- $34,415
The formula
Rebate deal finances (price − down − rebate) at the standard rate; low-rate deal finances (price − down) at the promo rate. The lower total of payments wins.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the auto rebate vs. low interest financing calculator
Should I take the rebate or low-interest financing?
It depends on the loan size and term. A cash rebate usually wins on shorter loans and smaller balances; low-rate financing tends to win on larger or longer loans. The calculator settles it for your numbers.
Can I get both the rebate and the low rate?
Almost never — dealers make them mutually exclusive. This tool exists precisely because you must choose one.
Does my down payment change the answer?
It can. A larger down payment shrinks both loans and can shift which option is cheaper, so enter your actual down payment.
Is the Auto Rebate vs. Low Interest Financing Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.