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Rebate vs 0% APR calculator.

When a manufacturer offers cash back or 0% financing, compare total paid each way. Take the rebate if financing the lower amount at your own rate costs less than financing the full amount at the promo rate. Enter both offers below.

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Example numbers are filled in. Replace them with yours; results update as you type.

Out-the-door price minus trade and down payment.

Usually 0%, sometimes 0.9% or 1.9%.

From a bank or credit union pre-approval.

Promo rates are often limited to shorter terms.

Take the 0% promo rate

Total paid$35,000.00
Monthly payment
$583.33
Interest
$0.00

Take the rebate, finance the rest

Total paid$37,029.77
Monthly payment
$617.16
Interest
$5,029.77

The promo rate costs $2,029.77 less Break-even: if you can borrow below 3.58% APR, the rebate wins.

Estimates for planning and comparison only, not financial, legal or tax advice. Rates, taxes and fees vary by lender, state and credit. Check the final numbers on the signed contract. Nothing you type is sent or saved.

How this calculator works

  1. Promo option: the full amount financed at the promo APR over the term.
  2. Rebate option: the amount minus the rebate, financed at your own APR over the same term.
  3. Break-even APR: the rate at which both options cost the same. If you can borrow below it, the rebate wins.

Assumptions and limits

  • Promo rates usually require top-tier credit and are often limited to shorter terms. Confirm you qualify first.
  • Sales tax is often charged on the pre-rebate price either way, so it is left out of the comparison.

Rebate vs 0% APR: questions

Is 0% financing better than a cash rebate?

It depends on the rebate size, the term and the rate you can get elsewhere. The calculator shows total paid each way and the break-even rate.

Can I get both the rebate and 0% APR?

Usually not; manufacturers typically offer one or the other on a given model. Ask which incentives can be combined.

Do I need good credit for 0% APR?

Typically, yes. Promo rates are usually reserved for top credit tiers. Get a pre-approval so you know your own rate.

Read next

Rebate vs 0% APR

When the rebate wins, when 0% wins, and the fine print.

Car loan pre-approval

Know your own rate before you compare.

Out-the-door price guide

Get the full price first.

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