Cash Back or Low Interest Calculator

Auto manufactures offer cash rebate and low interest incentives periodically. Very often, these offers are mutually exclusive, which means you can only take one. Use the calculator below to find out if cash rebate or low interest is a better deal for you.

Cash Back Offer
Cash Back Amount 
Interest Rate (High)%
Low Interest Rate Offer
Interest Rate (Low)%
Other Information
Auto Price 
Loan Termmonths
Down Payment 
Trade-in Value 
Your State
Sale Tax%
Title, Registration
and Other Fees


The Low Interest Rate Offer is Better!

The low rate will save you $2,253 in interest, which is larger than the cash back of $1,000.

With Cash Back Offer
Total Loan Amount$19,000.00
Sale Tax$1,750.00
Upfront Payment$7,050.00
Monthly Pay$354.22
Total of 60 Loan Payments$21,253.04
Total Loan Interest$2,253.04
Total Cost (price, interest, tax, fees)$28,303.04
With Low Interest Rate Offer
Total Loan Amount$20,000.00
Sale Tax$1,750.00
Upfront Payment$7,050.00
Monthly Pay$333.33
Total of 60 Loan Payments$20,000.00
Total Loan Interest$0.00
Total Cost (price, interest, tax, fees)$27,050.00

RelatedAuto Loan Calculator | Auto Lease Calculator

In the United States, many states tax cash rebates. These states view the cash rebates to be payment from the auto manufacturers, which do not affect the auto purchase price. For example, if you purchase a vehicle at $30,000 with cash rebate of $2,000, sales tax is calculated based on $30,000 instead of $28,000. Luckily, many states do not tax cash rebates, these states are Alaska, Arizona, Delaware, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Vermont, and Wyoming.

Likewise, many states tax trade-in values, which mean the trade-in values are not deducted when calculating vehicle sales tax. Fortunately, most states do not tax trade-in values, except California, District of Columbia, Hawaii, Kentucky, Maryland, Michigan, Montana, and Virginia.

This calculator has considered the different tax policies in different states.