How much do you really save? Deal or No Deal?

Suppose you are offered two alternative options for buying an item:

  1. an immediate discount of a certain amount, say $X, or
  2. special financing offer with zero or low interest rate.
Which deal is better? The answer to this depends on the amount of the discount, the standard interest rate, and the alternative interest rate that the seller offers. This calculator allows you to calculate the present value of the special financing offer. You can compare the immediate discount of option (1) to the present value of the special financing offer.


Deal Or No Deal Calculator
Purchase Price dollars
Number of Monthly Payments payments
Standard Financing Interest Rate %
Special Financing (deal) Interest Rate %
Present Value of the Special Financing Offer for the Purchase dollars

For the curious minds, you can check out the technical appendix to this calculator.

Note: This calculator is strictly for references only and is not affiliated with the television show.