Loan comparison calculator

Enter two offers for the same amount to compare total cost, monthly outlay, and actual payoff time.

Loan amount for both offers
300000
500000
1000000
Annual rate A
%
Annual rate B
%
Term A
mo.
Term B
mo.
Upfront fee A
Upfront fee B
Extra monthly payment A
Extra monthly payment B

Lower total cost by 51,055.48

Offer A

Total cost A668,944.5
Total cost B719,999.98
First payment A18,581.79
First payment B14,687.5
Actual term A36 mo.
Actual term B48 mo.

Use the same currency for the loan amount, fees, extra payments, and results.

Compare the whole loan, not just the rate

Two loan offers with different payment stacks connected by comparison arrows

The calculator gives both offers the same loan amount, builds a monthly repayment schedule for each, adds the entered upfront fee, and identifies the lower total cost. It keeps the first monthly outlay and actual payoff time beside that answer.

Put both offers on the same basis

Start with the amount you actually need to borrow. Enter each annual interest rate and term in months. Add a required one-time fee only when it is paid separately; if the lender finances the fee and charges interest on it, include it in the shared loan amount instead.

A fixed monthly payment is calculated as follows:

A=Pr1−(1+r)−n\displaystyle A=P\frac{r}{1-(1+r)^{-n}}

Here PP is principal, rr is the annual rate divided by 12 and 100, and nn is the contractual number of months. At 0%, the principal is divided evenly. An extra monthly payment goes to principal from month one, so it shortens the schedule.

The result follows the useful comparison order described by the Consumer Financial Protection Bureau: compare the amount, rate, term, monthly payment, and cost over the full term rather than focusing on one number.

Four offers that reverse the obvious answer

Lower rate, longer term. On 500,000, offer A at 20% for 36 months costs 668,944.50. Offer B at 18% for 48 months costs 704,999.98 before fees. The higher-rate loan is cheaper by 36,055.48 because it ends a year earlier.

Zero interest with a fee. A 300,000 loan at 0% for 24 months plus a 40,000 fee costs 340,000. A 10% offer for the same term with no fee costs 332,243.45, so the interest-bearing offer wins by 7,756.55.

Regular overpayment. Paying 5,000 extra each month on 500,000 at 20% cuts a 36-month schedule to 27 months. The first outlay is 23,581.79 and total payments are 622,067.12.

Identical offers. Two loans of 120,000 at 0% for 12 months both produce twelve payments of 10,000. When totals match within one minor currency unit, the calculator reports a tie.

What the comparison includes and misses

Total cost here means calculated principal and interest payments plus the one-time fee you entered. Use one currency throughout. A fee entered separately does not itself earn interest.

The schedule assumes a fixed rate, equal monthly periods, and payment at the end of each month. It rounds monthly interest to two decimal places and adjusts the final payment to clear the balance. A lender may use calendar days, different rounding, recurring fees, insurance, changing rates, or early-payment rules.

This is not an official APR or annual percentage rate calculation. APR disclosures can include fees under rules that depend on the product and jurisdiction. Compare the calculator with the lender's written disclosure, and reject an apparently cheap option if its monthly outlay leaves no room in your budget.

Questions about comparing loans

These answers separate the mathematical schedule from fees, official disclosures, and affordability.

Why must both offers use the same loan amount?

Different principals mix the price of financing with a different amount of money received. Put both offers on the amount you actually need before comparing them.

Is the loan with the lower interest rate always cheaper?

No. A longer term or a required fee can outweigh the lower rate. Check total cost, first payment, and payoff time together.

Where should I enter insurance or an origination fee?

Add a required one-time cost to the upfront fee if it is paid separately. If it is financed and earns interest, add it to the common loan amount instead.

What does the extra monthly payment do?

It is added to principal repayment from the first month. The scheduled payment stays the same, but the balance and term fall faster.

Does this calculate APR?

No. It compares cash payments under a simplified monthly model. Use the lender's official APR or equivalent disclosure for the regulated percentage measure.

Why can the lender's schedule differ?

The lender may accrue interest by exact day, round differently, move payment dates, or include charges and rate changes that are absent here.

Similar calculators

You may find the following calculators on the same topic useful:

Share on social media

If you liked it, please share the calculator on your social media platforms. It`s easy for you and beneficial for the project`s promotion. Thank you!

Calcopedia (en) → Loan comparison calculator