Cash Back vs Low Interest Rate Calculator - Which Is Better?

Cash Back vs Low Interest Rate Comparison Calculator

Common Information

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months
($)
(%)
($)
($)

Cash Back or Low Interest Rate Offer

($)
(%)
(%)

Calculation Results & Comparison

Cash Back Offer

Auto Price
Down Payment
Total Loan Amount
Sales Tax
Amount Due at Signing
Total Loan Payment
Total Loan Interest
Total Cost (price, interest, tax, fees)
Monthly P&I (Monthly Pay)
Loan Payoff Date

Low Interest Rate Offer

Auto Price
Down Payment
Total Loan Amount
Sales Tax
Amount Due at Signing
Total Loan Payment
Total Loan Interest
Total Cost (price, interest, tax, fees)
Monthly P&I (Monthly Pay)
Loan Payoff Date

Best Deal Recommendation

Auto Loan Payment Visualization

Cash Back Offer

Low Interest Rate Offer

Payment Schedule Tables

Cash Back Offer - Payment Breakdown

YearDateEnd BalanceInterestPrincipalCumulative InterestCumulative PrincipalCumulative PaymentsBalance DueInterest Balance Due
MonthDatePaymentPrincipalInterestEnd BalanceCumulative InterestCumulative PrincipalCumulative PaymentsBalance DueInterest Balance Due

Low Interest Rate Offer - Payment Breakdown

YearDateEnd BalanceInterestPrincipalCumulative InterestCumulative PrincipalCumulative PaymentsBalance DueInterest Balance Due
MonthDatePaymentPrincipalInterestEnd BalanceCumulative InterestCumulative PrincipalCumulative PaymentsBalance DueInterest Balance Due

If the Car Price Is $30,000 With a 5% Annual Interest Rate, Is Cash Back or a Low Interest Rate (2%) Better?

It depends on how much cash back you're getting. For example, let's say you have a $5,000 down payment, a 60-month loan term, and $1,000 cash back.

In that case, choose the low interest rate offer!

You'll save $1,882.94 compared to the cash back offer.

If $2,000 cash back, choose the cash back offer! You'll save $1,750.66 compared to the Low Interest Rate offer.

References

Government Resources

Financial Education

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