Compare a cash rebate with a low-interest financing offer.
On a ₹10,00,000 car with a ₹50,000 rebate at 10.5% versus 7.5% with no rebate over 5 years, the better deal is: take the low interest rate — it saves ₹14,139.70.
Dealers often offer a choice: a cash rebate with regular financing, or a low interest rate with no rebate. The cheaper option depends on the price, the rates and the term. Enter the price, down payment, rebate, both interest rates and the loan term to compare total cost.
A small rebate usually loses to a big rate cut on a long loan; a big rebate wins on a short one. The comparison counts the down payment plus all loan payments for each option. See the Auto Loan Calculator and the Loan Calculator for the details.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| A: loan amount (price − down − rebate) | ₹8,50,000.00 |
| A: monthly payment | ₹18,269.82 |
| A: total interest | ₹2,46,188.92 |
| A: total cost (down + payments) | ₹11,96,188.92 |
| B: loan amount | ₹9,00,000.00 |
| B: monthly payment | ₹18,034.15 |
| B: total interest | ₹1,82,049.22 |
| B: total cost (down + payments) | ₹11,82,049.22 |
| Difference (B − A) | −₹14,139.70 |
| Case | Result |
|---|---|
| Rebate ₹25,000 | ₹46,380.55 |
| Rebate ₹50,000 | ₹14,139.70 |
| Rebate ₹1,00,000 | ₹50,342.01 |
| Low rate 6% | ₹52,217.64 |
| 3-year loan | ₹13,266.70 |
It depends. Compare the total cost of both options — this calculator does it for you.
When the rebate is large, the loan is short, or the rate difference is small.
On longer loans, or when the low rate is far below the rebate-option rate.
It is the same in both options, so it changes the loan size and the interest but not which option wins by much.
Sometimes — ask. Often manufacturers only allow one of them.
Yes. A longer term gives low rates more time to add up in savings.
It uses the standard formula: cost = down payment + EMI × months EMI = P × r ÷ (1 − (1 + r)^−n) The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
