Cash Discount vs 0% Financing Calculator

Compare a lower cash price with true 0% or deferred-interest financing, including payoff timing, fees, opportunity cost, and retroactive interest risk.

Transparent calculator methodology

Measure the price of giving up a cash discount

Promotional financing can preserve cash, but the higher financed price functions like a financing cost. A deferred-interest offer also behaves differently from true 0% financing when a balance remains at the promotion deadline.

What the estimate includes

  • Cash price or entered cash discount
  • Financed price, down payment, fees, term, and planned payment
  • True 0%, deferred-interest, and post-promotion APR scenarios
  • After-tax savings yield, delayed-payoff probability, and residual-balance stress case

How the comparison works

The calculator derives the implied return required to justify the higher financed price, discounts scheduled payments using the entered after-tax savings yield, and models both on-time payoff and a delayed stress case. Deferred interest is applied retroactively only when that offer type is selected.

Important limitation

This is a purchase-cost comparison, not a credit recommendation. Read the actual promotion for minimum payments, deferred-interest calculation, allocation rules, fees, late-payment consequences, and the exact deadline; issuer calculations control.