⚖️ Loan Comparison Calculator

How the Loan Comparison Calculator Works

Loan offers are hard to compare when they differ in rate, term, and fees at the same time. A lower interest rate with a high origination fee can cost more than a slightly higher rate with no fee, and a longer term lowers the monthly payment while raising the total interest. This calculator puts two offers side by side so each of these trade-offs is visible.

For each loan it shows the monthly payment, total interest, upfront fees, total cost (all payments plus fees, minus the amount borrowed), and the APR with fees included. Which offer is better depends on your priorities — the lowest payment, the lowest total cost, or paying off sooner — so the calculator highlights the lower value in each row rather than choosing for you.

Formula

Monthly payment = L × i ÷ (1 − (1 + i)^−n),  i = rate ÷ 12
Total interest  = payment × n − L
Total cost of borrowing = total interest + fees
APR = rate j × 12 at which the payments repay (L − fees)

How to Use It

1. Enter the amount, rate, term, and upfront fees for the first offer.
2. Enter the same details for the second offer.
3. Compare the monthly payment, total cost, and APR.
4. Decide based on whether monthly cash flow or total cost matters more to you.

Frequently Asked Questions

How do I compare two loan offers?

Compare the total cost of borrowing (interest plus fees) and the APR, not just the interest rate. Also check that the monthly payment fits your budget.

Is the loan with the lower rate always cheaper?

No. Higher fees can outweigh a lower rate, especially on shorter loans. Comparing total cost and APR shows the full picture.

Why does a longer loan cost more?

Interest is charged for more months, so even at the same rate the total interest is higher, although each payment is smaller.

Can I compare loans with different amounts?

Yes, but the totals then reflect the different amounts. For a like-for-like comparison, use the same loan amount for both offers.

Related Glossary Terms

Related Calculators

• 🧾 APR Calculator — Find a loan’s true APR including origination and other upfront fees.
• 💳 Loan Calculator (EMI) — Works for any loan type — find your monthly payment and total interest.
• 🧩 Debt Consolidation Calculator — Compare your current debts with one consolidation loan: payment, interest, and time.
• 📅 Amortization Schedule Calculator — See your full year-by-year loan breakdown and what an extra payment saves.

Formula and content last reviewed: September 2026. All calculations run in your browser — nothing you enter is sent to or stored on our servers.