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Calculate whether it's better to pay cash or finance a car

Is it always the best move to pay in cash? This online tool will help you find out.

Paying for a vehicle is a large expense. Our calculator helps you determine whether it’s overall less expensive to pay for the vehicle with cash or purchase it using financing. Typically, the interest rate you receive on a savings account will be less than the loan rate. But that’s not always the case when manufacturers offer incentives. Once you enter the vehicle purchase price, interest rates for the vehicle loan and savings account, along with the number of months for the loan, the calculator will determine what the loan payments would be. It will also display if you’ll save more overall by paying cash. 

If you have an emergency fund with 3 – 6 months of basic living expenses saved, refrain from taking money out of that fund for your new car.

Buying a car: Cash vs. financing

All fields are required. If something doesn't apply, place a 0 in the field.

Results

Monthly payment: $0
Total interest: $0
Your monthly loan payment will be $0 and you will pay $0 interest over 0 months.
If you pay cash for your auto when purchased, and then continue to save, you will have $xxxxxx in savings accumulated.

Neither State Farm® nor its agents provide tax or legal advice. This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. Please consult your own adviser regarding your particular circumstances.




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