One of the most common dilemmas car buyers face is choosing between two attractive incentives offered by manufacturers: a Cash Back Rebate or Low Interest Financing. The Cash Back or Low Interest Calculator helps you mathematically determine which option puts you in a better financial position by analyzing the total out-of-pocket cost.

Car manufacturers differ in their marketing strategies. Some offer a massive upfront discount (e.g., $3,000 Cash Back) combined with a standard market interest rate from a bank. Others offer a subsidized interest rate (e.g., 0.9% or even 0% APR) but require you to pay the full price of the car. This calculator takes into account your down payment, trade-in value, sales tax, and fees to give you a precise comparison.