Loan comparison calculator
Enter two loan offers and see how they differ. Each loan is a standard fixed-rate loan repaid in equal monthly payments. The calculator shows the payment, the interest over the whole term and the total you pay including upfront fees, then tells you which loan costs less and by how much.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the amount, yearly interest rate and term in years for loan A.
- Do the same for loan B, adding any upfront fees such as an origination fee.
- Read which loan costs less in total, then compare payments and interest.
How it works
For each loan the payment is P × r ÷ (1 − (1 + r)^−n) with r = rate ÷ 12 and n = months. Total interest is payment × n − P, and the total paid is payment × n plus the fees. The difference is the absolute gap between the two totals.
Worked example
Loan A is 12,000 at 0% over 1 year: 1,000 a month and 12,000 in total. Loan B is 12,000 at 0% over 2 years with a 600 fee: 500 a month and 12,000 + 600 = 12,600 in total. B has the lower payment, but A costs 600.00 less overall.
Tips
- Match the terms when you can. A shorter loan nearly always has a higher payment and lower total interest.
- Add every fee the lender charges at the start, so the totals are comparable.
- Check prepayment rules. If you can repay early, the long loan may cost less than shown.
Frequently asked questions
How is the monthly payment calculated?
With the standard annuity formula: payment = P × r ÷ (1 − (1 + r)^−n), where r is the annual rate divided by 12 and n the number of months. At 0% the payment is simply the amount divided by the months.
Why can a lower payment cost more overall?
A longer term lowers the payment but means interest is charged for more months. Compare the total cost row as well as the payment: for example 20,000 at 7% over 5 years has a payment of 396.02, while 6.5% over 7 years has a lower payment but more total interest.
Are the upfront fees included in the interest?
No. Fees are added to the total paid but are not counted as interest. To see the rate that includes fees, use the APR calculator.
Can I compare loans with different amounts?
Yes. Each loan has its own amount, rate, term and fees. Keep in mind that a larger loan naturally costs more in total.
Will my lender's figures match exactly?
They may differ by a few cents. Lenders often count interest by the actual days in each month and round every payment, while this tool uses a flat monthly rate of one twelfth of the annual rate.