Loan Comparison Calculator

Metric	Loan A	Loan B
Loan Amount	$250,000	$250,000
Interest Rate	6.5%	7.0%
Term	360 mo (30 yr)	180 mo (15 yr)
Monthly Payment	$1,592.81 ✓ Best	$2,260.55
Total Interest	$321,412.11	$155,399.56 ✓ Best
Total Cost	$573,412.11	$406,899.56 ✓ Best
APR (est.)	6.58%	7.10%

Metric

Loan A

Loan B

Loan Amount

$250,000

Interest Rate

6.5%

7.0%

Term

360 mo (30 yr)

180 mo (15 yr)

Monthly Payment

$1,592.81 ✓ Best

$2,260.55

Total Interest

$321,412.11

$155,399.56 ✓ Best

Total Cost

$573,412.11

$406,899.56 ✓ Best

APR (est.)

6.58%

7.10%

What is Loan Comparison Calculator?

A loan comparison calculator lets you evaluate multiple loan offers side by side to find the best deal. Instead of comparing individual quotes on paper, enter each loan's details and instantly see which offers the lowest monthly payment, least total interest, and best overall value. Our calculator supports up to 5 simultaneous loans, includes closing costs/fees in the comparison, estimates APR, and highlights the best option in each category with visual bar charts.

How It Works

Enter details for 2-5 loans: amount, interest rate, term in months, and any fees/closing costs. The calculator computes monthly payment, total interest, total cost, and estimated APR for each loan. A comparison table highlights the best option in each row. A bar chart provides visual comparison of total costs.

Formula

Monthly Payment = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
Total Payment = Monthly × n
Total Interest = Total Payment − (Principal + Fees)
APR ≈ rate adjusted for fees over loan term

Formula Explained

The standard amortization formula calculates monthly payment from principal (P), monthly rate (r = annual/12), and number of payments (n). Total interest is the difference between total payments and the amount borrowed plus fees. APR is estimated by finding the rate that would produce the same monthly payment on the original principal (before fees).

Example

Loan A: $250,000 at 6.5% for 30 years, $2,000 fees Monthly: $1,580.17, Total Interest: $316,860, Total Cost: $568,860 Loan B: $250,000 at 7.0% for 15 years, $1,500 fees Monthly: $2,248.36, Total Interest: $152,205, Total Cost: $403,705 Loan B saves $165,155 total but costs $668/mo more

Tips & Best Practices

✓Always compare APR, not just interest rate — APR includes fees.
✓A shorter term costs more monthly but saves tens of thousands in interest.
✓Ask lenders for a Loan Estimate form to get accurate fee comparisons.
✓Consider your time horizon — if you might sell in 5 years, monthly payment matters more.
✓Factor in potential rate changes if comparing fixed vs adjustable-rate loans.

Common Use Cases

•Comparing mortgage offers from multiple lenders
•Evaluating auto loan terms from dealers vs banks vs credit unions
•Deciding between 15-year and 30-year mortgage terms
•Assessing student loan refinancing options
•Comparing personal loan offers with different fees and rates

Frequently Asked Questions

Enter each loan's amount, interest rate, term, and fees. The calculator shows monthly payment, total interest, total cost, and APR side by side. The best value in each category is highlighted in green. Consider both monthly payment (affordability) and total cost (overall cheapest).

It depends on your priorities. Lower monthly payment (longer term) improves cash flow but costs more overall. Lower total cost (shorter term or lower rate) saves money long-term but requires higher monthly payments. If you can comfortably afford the higher payment, choose lower total cost.

The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate PLUS fees, points, and other charges. APR gives a more accurate picture of the true cost. A loan with 6.5% rate and $3,000 in fees may have a 6.8% APR.

Closing costs (origination fees, appraisal, title insurance, etc.) increase the true cost of a loan. A loan with a lower rate but higher fees may cost more than a higher-rate loan with no fees, especially for shorter terms. Our calculator includes fees in the total cost comparison.