Cash Back vs Low Interest Calculator
Compare loan payments for a principal-reducing rebate or a lower nominal rate. Excess rebates are invalid; exact ties are shown.
Model assumptions
The rebate only reduces the financed principal of the cash back offer; it is not a separate cash payout. Both loans have the same term and fixed monthly payments. Compare loan payments only: no fees, taxes, eligibility, lender rounding or early repayment is modeled. Annual rates are nominal, divided by 12. Amounts are USD.
What happens when the rebate equals the financed amount?
The cash back offer has zero financed principal, zero payments and zero interest. A larger rebate is invalid because this model treats the rebate only as a reduction of principal, not as an extra cash payout.
Does a lower modeled cost guarantee the best dealer deal?
No. The comparison uses the entered principal, rebate, nominal rates and common term. Fees, taxes, eligibility and lender rounding can change actual offers. Exact ties are shown; comparisons too close for numeric precision are unavailable.