Using the Cash Back or Low Interest Calculator
Use the rate that goes with each offer and keep the term the same. The rebate reduces the balance in one scenario; the promotional rate lowers the finance charge in the other.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Purchase price
- 30000
- Cash rebate
- 2000
- Rate with rebate (%)
- 6
- Promotional rate (%)
- 2
- Term (months)
- 60
Example result
- Monthly with rebate
- 541.32
- Monthly with promotional rate
- 525.83
- Rebate option total savings
- -929.14
Method and assumptions
Compares total equal monthly payments. Excludes taxes, fees, down payment and time value of money.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
Which option wins when rebate savings are positive?
A positive rebate-option savings result means the total modeled payments are lower with the rebate. A negative result means the promotional-rate option costs less under these inputs.
Guide updated .