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Financing vs Paying Cash

Should I finance or pay cash?

Enter the cash price and the financing terms to see what financing costs in all.

One Click Answers · Financing vs Paying Cash
oneclickanswers.com/financing-vs-cash-calculator · Printed
About this tool & how to use it

What it does

Compares paying cash with financing: the payment, interest, fees and total against the cash price. It does not say which is right for you.

How to use it

  1. Enter the price if you pay cash and the price if you finance.
  2. Enter any down payment, the APR, the term and fees.
  3. Read how much more or less financing costs than the cash price.

One click answer

Your answer will appear here.

Fill in the form and your answer will appear here.

Everything is calculated in your browser: the prices and numbers you enter are never sent anywhere or stored. We do not know any store's prices or tax rates, and these results are arithmetic, not advice to buy.

Assumptions

  • This compares totals only. It does not say which choice is right for you: that depends on your cash and your other options.
  • The rate and fees are the ones you enter. A financed price can differ from the cash price.

Printed from oneclickanswers.com. Results are estimates based on what was entered; see the assumptions above.

How it works

The amount financed is the financed price minus the down payment. The payment is the level-payment formula: P x r x (1 + r)^n / ((1 + r)^n - 1), with r = APR / 12; at 0% it is P / n.

Total if financed = down payment + all the payments + fees. The difference is that minus the cash price.

$18,000 financed at 5.9% for 60 months is $347.15 a month, about $2,829 in interest.

Formulas and details
  • r = APR / 100 / 12; n = months; P = financed price - down payment.
  • Payment M = P x r x (1 + r)^n / ((1 + r)^n - 1) (M = P / n at 0%). Interest = M x n - P.
  • Total financed cost = down payment + M x n + fees. Difference = total financed cost - cash price.

Assumptions

  • This compares totals only. It does not say which choice is right for you: that depends on your cash and your other options.
  • The rate and fees are the ones you enter. A financed price can differ from the cash price.

Example

Input: The starting values already in the form

Result: Financing would cost about $3,129.24 more in all than paying cash: $23,129.24 against $20,000.00.

Questions

Is it cheaper to finance or pay cash?

Paying cash avoids interest, but a financed price can be lower than the cash price (for example 0% financing against a cash discount). Enter both to compare.

Does this say what I should do?

No. It shows the totals. The decision depends on your situation.

Last reviewed 2026-10-04.

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