Loan Comparison Calculator
Compare two loan offers side by side: the payment, the interest, the fees and what each costs in total.
Result
Difference in cost: $324.14
Fees are paid up front, not added to the loan, and nothing is repaid early. A fee rolled into the loan also earns interest.
- Costs less
- Loan A
- Loan A monthly payment
- $500.95
- Loan B monthly payment
- $493.85
- Loan A interest and fees
- $5,056.96
- Loan B interest and fees
- $5,381.10
- Loan A total paid
- $30,056.96
- Loan B total paid
- $30,381.10
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Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the Loan Comparison Calculator
- Enter the amount, annual interest rate and term of the first offer, and any fee you would pay to take it out.
- Enter the same for the second offer.
- Read which one costs less in interest and fees, by how much, and what each payment would be.
How each loan is costed
Each offer is run through the same schedule the loan payment calculator uses:
payment = amount × r ÷ (1 − (1 + r)^−n), r = annual rate ÷ 12cost of borrowing = total interest + upfront feestotal paid = amount + total interest + upfront feesThe payment is rounded to the cent, and each month’s interest is charged on the balance to the cent, the way a lender bills. The last payment absorbs the rounding, so the totals match what a statement would show.
Comparing fairly
For two loans of the same amount, the cheaper one is the one with the lower cost of borrowing. That is the right comparison when you would keep each loan to the end. For different amounts the page names no cheaper loan, because the bigger loan’s cost is bigger for that reason alone. If you might repay early, or refinance, a loan with a fee costs relatively more, because you pay the whole fee but only part of the interest. Loans with a prepayment penalty add a cost this page does not include.
What is not included
Fees added to the loan balance rather than paid in cash, insurance sold with the loan, and any interest you could earn on money you keep by choosing the lower payment.
With your numbers
- Loan A: $5,056.96 interest + $0.00 fees = $5,056.96
- Loan B: $4,631.10 interest + $750.00 fees = $5,381.10
- Difference = $324.14
Quick reference
Fees are paid up front, not added to the loan, and nothing is repaid early. A fee rolled into the loan also earns interest.
| Example | Difference in cost |
|---|---|
| 7.5% with no fee against 6.9% with a 750 fee | $324.14 |
| The same with a 1,200 fee | $774.14 |
| 300,000 over 30 years at 6.5% against 15 years at 6% | $226,953.92 |
| A car loan over 48 or 72 months | $2,884.05 |
| Two identical loans | $0.00 |
| 15,000 at 5.9% with 300 against 6.4% with none | €134.62 |
Common questions about the Loan Comparison Calculator
- Why can the loan with the lower rate cost more?
- Because of fees. A lower rate saves interest every month, but a fee is paid at once. On 25,000 over five years, 6.9% instead of 7.5% saves about 426 of interest, so an upfront fee above that makes the lower-rate loan the dearer one.
- Is a lower payment always cheaper?
- No. A longer term lowers the payment and raises the total interest, often by a lot. 300,000 over 30 years at 6.5% costs far more interest than over 15 years at 6%, even though its payment is much lower. The page shows both so neither is hidden.
- What if the loan amounts differ?
- Then interest plus fees is not a fair measure, because a larger loan costs more interest even at a lower rate. Over five years, 10,000 at 10% costs 2,748.26 in interest and 25,000 at 5% costs 3,306.88, though the second rate is half the first. So the page shows each loan’s payment, interest and fees but does not say which costs less. Compare the rates instead, or the APR of each, which the APR calculator works out with the fees included.
- Does this give the APR of each loan?
- No. The APR spreads the fees over the life of the loan as a yearly rate. The APR calculator works it out for one loan at a time; this page compares the money paid.