Cash vs 0% Financing Calculator
Example: Amount you could finance: 30000 $ · Financing term: 60 months · If invested, return: 5 %/yr · Cash-purchase discount offered: 1500 $
| Net benefit of financing | $7,001 |
| Your cash earns if invested | $8,501 |
| Cash discount you give up | $1,500 |
| Verdict (1=finance & invest, 0=pay cash) | 1 |
Worked example
Financing $30,000 at 0% for 60 months lets you invest that cash instead. At 5%, it could grow by roughly $8,500 over five years. If taking the 0% deal costs you a $1,500 cash discount, financing still comes out about $7,000 ahead — provided you actually invest the money rather than spend it.
Frequently asked questions
Is 0% financing really free money?
Only if there is no cash discount you forfeit and you genuinely invest the freed-up cash. Many "0%" offers are paired with a lower price for cash buyers, which is the true cost of the promo.
What is the risk of financing to invest?
Investment returns are not guaranteed, while the discount you gave up is certain. If the money would sit in checking or be spent, paying cash is the safer, cheaper choice.
Does my credit affect this?
Yes — 0% offers usually require strong credit. If you would instead pay a normal APR, use the wait-and-save or total-interest tools, since the math flips entirely once real interest is involved.