Loan Comparison Calculator
Compare two fixed-rate loan offers side by side to see how interest rate and repayment term affect the monthly payment, and how interest, term, and upfront fees affect total borrowing cost. Use it for personal loans, auto loans, home improvement loans, and other fixed-rate installment loans.
📝 Compare Loan Offers
Enter the amount, annual interest rate, term, and upfront fees for two fixed-rate loan offers. Results update when both loans have valid required inputs.
United States · amounts are shown in USD. Changing region resets the form; it does not convert currency.
📊 Loan Comparison
Which loan has the lower monthly payment, and which costs less over the full term? Compare those results separately: a lower payment does not always mean a lower borrowing cost.
Financial disclaimer: This calculator is for informational purposes only and does not provide financial, tax, legal, loan, or investment advice. Actual results may vary depending on lender terms, tax rules, fees, deductions, and personal circumstances.
📘 How the Loan Comparison Calculator Works
This calculator compares two fixed-rate loan offers side by side using monthly payment, total interest, fees, and total borrowing cost. A lower monthly payment does not necessarily mean a cheaper loan because a longer term can increase total interest. Each loan is calculated independently, then the results are compared to the displayed cent.
Monthly payment: estimated principal and interest payment for the selected term.
Total interest: total scheduled payments minus the original principal.
Total borrowing cost: total interest plus the upfront fees entered.
Total paid including fees: all scheduled loan payments plus upfront fees.
📊 Interest Rate vs. APR: What's the Difference?
The annual interest rate calculates the scheduled payment. APR is a broader borrowing-cost measure that may include certain lender fees. This calculator does not calculate official APR. Do not substitute APR for the interest rate unless the lender confirms that it is also the rate used to calculate the scheduled payment.
If an offer only shows APR, review the lender disclosure for the actual interest rate, financed amount, fees, and payment schedule before comparing it here.
🧮 Loan Payment Formula
M = P × r ÷ (1 − (1 + r)⁻ⁿ)
M is the monthly payment, P is principal, r is the monthly interest rate, and n is the number of monthly payments. At 0% interest, monthly payment is principal divided by the number of months.
The calculator uses these rules for its live results. Upfront fees are kept outside the amortized principal unless you include a financed fee in the loan amount.
📝 Worked Example
To compare loans with different terms, consider a USD 20,000 loan at 8% for 36 months with 500 in upfront fees against a USD 20,000 loan at 6.5% for 60 months with 150 in upfront fees.
| Metric | Loan A | Loan B |
|---|---|---|
| 💵 Monthly payment | $626.73 | $391.32 |
| 📉 Total interest | $2,562.18 | $3,479.38 |
| Borrowing cost | $3,062.18 | $3,629.38 |
Loan B has the lower monthly payment, while Loan A has the lower total interest and total borrowing cost. A lower monthly payment can still produce a higher lifetime borrowing cost when the repayment term is longer.
🌎 United States and Canada
🇺🇸 United States · USD
Compare the interest rate, APR disclosure, amount financed, term, and total cost—not just the monthly payment. Confirm whether origination or other charges are financed or paid upfront; this tool does not calculate official APR.
🇨🇦 Canada · CAD
Select Canada to display amounts in CAD. Loan term affects both monthly payment and full-term cost. This page shows principal, interest, and fees separately: borrowing cost is interest plus upfront fees, while total paid also includes principal. Lender disclosures may vary by product and province.
❓ Loan Comparison Calculator FAQ
🧮 How do I compare two loan offers side by side?
Enter each offer's amount borrowed, annual interest rate, repayment term, and separately paid upfront fees. Compare the monthly payments, total interest, borrowing costs, and total paid rather than relying on one figure.
💵 Does a lower monthly payment mean a cheaper loan?
No. A longer repayment term can lower the monthly payment while increasing total interest. Check the full-term borrowing cost as well as the monthly amount.
📅 How do I compare loans with different interest rates and terms?
Enter each loan's own rate and term, then compare both payment and full-term cost. A shorter term may have a higher monthly payment but less total interest. If the amounts borrowed differ, that difference also affects the totals.
💰 What is total borrowing cost?
Here, total borrowing cost is total interest plus the separately paid upfront fees entered. It excludes the original principal, which is shown separately and included in total paid.
📊 Should I compare the interest rate or APR?
Review both in the lender's disclosure, but enter the annual interest rate used for the scheduled payment here. APR may include certain fees; this calculator does not calculate official APR. Do not substitute APR for the payment rate unless the lender confirms they are the same.
🧾 How do origination fees affect a loan comparison?
Origination fees paid separately increase borrowing cost and total paid without changing the scheduled monthly payment. They can change which offer costs less even when that offer has a lower interest rate. If a fee is financed, include it in the loan amount instead of the separate upfront-fee field.
👤 Can I use this as a personal loan comparison calculator?
Yes, for fixed-rate personal loans with fixed terms and equal monthly payments. Enter each offer's interest rate, term, amount borrowed, and separately paid upfront fees; lender-specific terms may still differ.
🚗 Can I use this as an auto loan comparison calculator?
Yes, for fixed-rate auto loans with fixed terms and equal monthly payments. Compare the amount financed, payment, interest, and fees; taxes, insurance, and other vehicle costs are not calculated here.
⚖️ Can I compare loans with different amounts?
Yes. Both loans are calculated independently, and the result flags when principal amounts differ. Part of any total-cost difference may then reflect borrowing different amounts rather than only a better rate or term.
0️⃣ Can I compare a 0% interest loan with another loan?
Yes. For a 0% loan, the principal is divided by the number of months and total interest is zero. Separately paid upfront fees still count toward borrowing cost.
⚠️ Is a loan comparison calculator the same as a lender quote?
No. This is a planning estimate, not a lender quote or product recommendation. It does not model variable rates, interest-only or balloon payments, lender-specific daily interest, taxes, insurance, or other contract terms.