Cash vs Financing

Compare purchase costs and a separate return assumption.

Your numbers

Enter your numbers to see the result.

How Cash vs Financing works

Compare the cash purchase amount with down payment plus all scheduled loan payments. Hypothetical investment gain compounds retained cash over the loan term at the return you enter.

A worked example

These sample values illustrate the calculation. Use your own numbers in the calculator for your result.

Example inputs

Cash price ($): 25000
Financed price ($): 25000
Down payment ($): 3000
APR (%): 6.5
Months: 60
Hypothetical annual return (%): 4

Financing purchase cost: $28,827.32
Cash cost: $25,000.00
Loan interest: $3,827.32
Hypothetical investment gain: $4,766.36

Assumptions and limits

Loan interest follows the entered terms. The investment gain is hypothetical and not guaranteed. It assumes retained cash stays invested for the whole term and ignores tax and payment funding.

Check lender terms and manufacturer guidance. These estimates do not replace a mechanical inspection.