Same as cash vs 0% APR vs deferred interest: what homeowners risk and what contractors pay
Three promos that sound alike and work very differently. Here is how each one works, a worked example of retroactive interest, what each costs the contractor, and how to explain them honestly.
By The Revcore team
Reviewed by Hayden Mitchell, founder
11 min read
Quick answer
What is the difference between same as cash, 0% APR and deferred interest?
With true 0% APR, no interest is charged during the promo, and any balance left afterward only earns interest from then on. With deferred interest, interest builds from day one and is charged back in full if any balance remains when the promo ends. Same as cash is a sales phrase, not a legal category: in home improvement it usually describes a "no interest if paid in full" plan, which is deferred interest, so read the terms.
"Twelve months same as cash." "0% for 18 months." "No interest if paid in full." Homeowners hear these as the same thing. They are not, and the difference can mean thousands of dollars to the homeowner and several points of margin to you.
This guide explains the three promo types in plain terms, walks through what happens when a deferred interest promo is not paid off, shows what each type typically costs the contractor, and gives you language to explain them honestly at the table.
What does 0% APR mean on home improvement financing?
A true 0% APR promo means the interest rate is zero for the promo period. The homeowner makes payments, and every dollar goes to principal. If a balance is left when the promo ends, the loan's regular rate applies from that point forward, on the remaining balance only. Nothing is charged backward.
Some true 0% plans run the full loan at 0%, such as 24 equal payments that pay the job off completely. Others offer 0% for a promo window and then convert to a regular rate. Either way, the homeowner's worst case is paying interest on what is left, going forward.
What is deferred interest?
The CFPB describes deferred interest as interest that builds up during the promo and is waived only if you meet the terms. Its explainer on "no interest if paid in full" offers says that if the balance is not paid off before the period ends, or the borrower is more than 60 days late on a minimum payment, interest is charged on the balance owed in each month since the purchase.
In other words, the interest is not skipped. It is tracked quietly the whole time and forgiven only if the homeowner clears every dollar by the deadline. That is why these plans often carry a high standard rate. The GreenSky rate sheet published by EGIA (effective September 1, 2020) lists its "No Interest if Paid in Full" plans at 17.99% to 26.99% interest, with a footnote confirming they are deferred interest plans.
Is same as cash the same as 0% APR?
Not necessarily. "Same as cash" is marketing language that means "no interest if you pay it off in time." It does not tell you whether the plan is true 0% APR or deferred interest. In home improvement and retail financing it is most often used for deferred interest plans, but the only way to know is the credit agreement. If you use the phrase, know which one your lender actually offers.
Swipe the table to see every column.
| True 0% APR | Deferred interest | "Same as cash" | |
|---|---|---|---|
| Interest during the promo | None charged, none building | Builds in the background | Depends on the actual plan |
| If paid off in time | No interest | No interest | No interest |
| If a balance is left | Interest only from the end of the promo, on what is left | Interest from the purchase date, on the original balances, added at once | Depends on the actual plan, often deferred interest |
| Homeowner risk | Low | High if they miss the payoff | Unknown until you read the terms |
| Typical cost to the contractor | Higher | Lower | Depends on the plan |
Worked example: what happens if a deferred interest balance is not paid off
This is an illustrative example with simplified math, not a quote from any lender. A homeowner finances a $15,000 roof on a 12 month deferred interest plan at a 26.99% standard APR, the top of the range on the 2020 rate sheet above. To clear it in 12 months they need to pay $1,250 a month. They pay $1,000 a month instead, which feels reasonable and is well above the minimum.
Swipe the table to see every column.
| True 0% APR plan | Deferred interest plan | |
|---|---|---|
| Paid during the promo | $12,000 | $12,000 |
| Balance left at month 12 | $3,000 | $3,000 |
| Back interest added at month 12 | $0 | About $2,500 |
| Balance going into month 13 | $3,000 | About $5,500 |
| Interest in month 13 at 26.99% | About $67 | About $124 |
Being $3,000 short cost the homeowner about $2,500 in one day. The interest was calculated on the full $15,000 in the first month, not just the $3,000 that was left. That is the part homeowners do not expect, and the part that turns into a one star review with your company name in it.
The CFPB has flagged this pattern. In a June 2017 release it encouraged retail card companies to consider true 0% promotions, where interest is charged only on the balance that remains, and noted that many consumers who missed the deadline paid off the rest shortly after, which suggests the charges caught them by surprise.
What does each promo cost the contractor?
Someone pays for 0%. When the homeowner pays no interest, the lender usually charges the contractor a merchant or dealer fee, deducted from the funded amount. The pattern is consistent across programs: the longer and safer the promo, the higher the fee. See what a dealer fee is for the full breakdown.
5.10%
Contractor fee, 12 month no interest if paid in full, with payments
6.80%
Contractor fee, 12 month no interest, no payments
11.00%
Contractor fee, 24 month true 0% interest
Here is what published fee levels look like on a $25,000 job. The rate sheet figures are from 2020 and specific to one program, so treat them as a picture of how fees scale, not today's prices.
Swipe the table to see every column.
| Program | Fee | Cost on $25,000 |
|---|---|---|
| Wisetack standard (via Jobber, Housecall Pro, JobNimbus) | 3.9% | $975 |
| Wisetack 0% APR, 6 months (Housecall Pro add-on) | 4.9% | $1,225 |
| GreenSky 12 month deferred interest, with payments (2020) | 5.10% | $1,275 |
| GreenSky 12 month deferred interest, no payments (2020) | 6.80% | $1,700 |
| GreenSky 18 month deferred interest, no payments (2020) | 9.75% | $2,437.50 |
| Wisetack 0% APR, 24 months (Housecall Pro add-on) | 9.9% | $2,475 |
| GreenSky 24 month true 0% interest (2020) | 11.00% | $2,750 |
Two things to notice. Deferred interest is cheaper for the contractor than true 0% of the same length because the lender expects to collect back interest from some homeowners. And plans that cost you less at the table can cost the homeowner more later. That trade is worth making on purpose, not by default.
How to cover the fee
Most contractors build an expected financing cost into their pricing rather than eating it job by job. Work out what share of your jobs are financed and which plans they use, then run the effect on margin with a markup and margin calculator. Whether you can charge a financed customer a different price than a cash customer depends on your lender agreement and state law, so check with your lender and counsel.
Which promo should a contractor offer?
- Offer a short true 0% plan if the fee fits your margin. It is the easiest promo to explain and the hardest to regret.
- If you offer deferred interest, pair it with a clear payoff plan. It can make sense for homeowners with money coming, like an insurance check or a bonus. It is a poor fit for someone who is already stretching.
- Always offer a longer fixed-rate option too. Many homeowners do better with a predictable payment than a short promo they may not clear. See the payment tables in how much a new roof costs per month.
- Do not lead with the promo. Lead with the job, then show payment options as a way to fit it into the budget.
How to explain deferred interest honestly at the kitchen table
Homeowners are wary. A Slice by FNBO survey of homeowners with $15,000+ projects found, by the vendor's own numbers, that 68% worry about hidden fees and 51% find financing confusing. A clear explanation is how you earn trust, and it protects you from the callback when month 13 arrives.
Name the type in plain words
Say whether the plan is true 0% or deferred interest. Avoid "same as cash" on its own, because it hides the one detail that matters.
Give the payoff date and the payoff payment
"To pay no interest, the balance needs to be paid by March 2028. That is $1,250 a month." Write both on the estimate or the handoff sheet.
Explain what happens if they miss it
For deferred interest, say it directly: interest from the start date gets added if any balance is left. One sentence, calm tone, no fine print.
Offer the alternative
Show a fixed-rate term next to the promo so the homeowner can choose the predictable payment if the promo payment is a stretch.
Let the lender's disclosures do the legal work
Point the homeowner to the credit agreement and the lender's disclosures before they sign. Your job is to be clear, not to act as their financial advisor.
Set a reminder
If you have the homeowner's consent, a friendly check-in a few months before the promo ends builds goodwill. Automated reminders make this easy to do consistently.
Where Revcore fits
Revcore's homeowner financing is coming soon and will be included on every Revcore plan when it launches. The plan is to show monthly payments inside the in-home sales presentation and on every estimate package, offer 0% promotional plans of 12, 18 and 24 months alongside longer fixed-rate terms, let the homeowner apply from the estimate on their phone, and show funding status on the job. Terms, rates and lender details will be announced at launch. You can see the financing preview.
Jobber, Housecall Pro, JobNimbus and ServiceTitan already show financing on quotes, so the idea is not new. What Revcore is building toward is putting the payment and the promo explanation right next to the Good/Better/Best options in the presentation, where the homeowner is actually deciding, in the same app your rep already uses to sign and take the deposit. For the full rollout, read how to offer financing to customers.
Frequently asked questions
Is same as cash the same as deferred interest?
Often, but not always. "Same as cash" is a marketing phrase meaning no interest if paid off in time. In home improvement financing it usually describes a deferred interest plan, where interest from the purchase date is added if any balance remains. Read the credit agreement to be sure.
What happens if you don't pay off deferred interest in time?
Interest is charged back to the purchase date, calculated on the balance owed each month since the purchase, and added to what you still owe. In an illustrative example, a $15,000 balance at 26.99% with $3,000 left after 12 months adds roughly $2,500 in interest.
Is 0% APR better than deferred interest?
For the homeowner, usually yes. With true 0% APR, a leftover balance only earns interest from the end of the promo. With deferred interest, missing the deadline triggers interest from day one. True 0% often costs the contractor a higher fee.
Who pays for 0% financing on home improvement jobs?
Usually the contractor, through a merchant or dealer fee deducted from the funded amount. Published examples range from 4.9% for a 6 month 0% plan to 9.9% for 24 months on Housecall Pro's Wisetack add-ons, and a 2020 GreenSky rate sheet lists 11.00% for a 24 month 0% plan.
Can a contractor charge more for financed jobs?
It depends on your lender agreement and state law. Many contractors build an expected financing cost into all their pricing instead. Check with your lender and counsel before charging financed customers a different price.
How do I avoid deferred interest charges?
Divide the promo balance by the number of promo months and pay at least that each month, not just the minimum. Pay off the full balance before the deadline, and never be more than 60 days late on a payment, which can also end the promo.
Further reading: the CFPB's explainer on no interest if paid in full offers and its 2017 statement on deferred interest promotions.
Written by the Revcore team. Reviewed by Hayden Mitchell, founder of Revcore Pro, who closed $3.5M of home improvement at kitchen tables and helped scale a contractor from $1M to $10M.
