Choose between promotional cash-back incentives and subsidized financing rates using total-cost math.
Overview
Promotional auto or retail offers often force a trade-off between rebate and low APR.
A larger rebate can look attractive, but high financing cost may erase benefit.
This calculator compares all-in cost across both pathways.
Use your real term, financed amount, and rate assumptions for accurate choice.
Steps
Input negotiated pre-incentive price.
Add rebate amount and regular APR terms.
Input discounted APR and no-rebate terms.
Use same repayment length for fair comparison.
Choose option with lower net cost.
Math
Net Cost = Principal + Total Interest - Cash Back
Comparison uses total repayment cost under each offer after applying any upfront rebate.
Worked cases
Compute financed cost with rebate and standard APR.
Net benefit depends on interest paid over full term.
Compute total financed cost at reduced APR.
Lower rate can outperform rebate on longer terms.
Re-run at shorter term horizon.
Rebate may win more often when term is short and interest window is smaller.
Why use this
Questions