# Loan Comparison Calculator

URL: https://speedycalculator.com/calculators/finance/loan-comparison/
Last updated: 2026-10-25

> The loan comparison calculator compares two loan offers side by side – amount, rate, term and fees – showing each monthly payment, total interest, total cost and real APR, and which is cheaper overall.

## Inputs

- Loan amount
- Loan A – interest rate (%)
- Loan A – term (months)
- Loan A – fees
- Loan B – interest rate (%)
- Loan B – term (months)
- Loan B – fees

## Results

- Loan A – monthly payment
- Loan B – monthly payment
- Loan A – total cost (interest + fees)
- Loan B – total cost (interest + fees)
- Loan A – APR
- Loan B – APR
- Cheaper overall
- Difference in total cost

## Formula

```
Payment = pmt(rate ÷ 12, months, amount)
Total cost = payments × months + fees
APR = rate at which (amount − fees) equals the present value of the payments
```

## Explanation

A lower payment doesn't mean a cheaper loan – it may just be longer. Compare total cost and APR, and consider whether you might repay early (when upfront fees matter more).

### How to use the Loan Comparison Calculator

- **Loan amount**
- **Loan A – interest rate**
- **Loan A – term**
- **Loan A – fees**
- **Loan B – interest rate**
- **Loan B – term**
- **Loan B – fees**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the amount, interest rate, term and fees of each loan.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyLoan A – interest rateIn %Loan A – termIn monthsLoan A – feesAmount in your currencyLoan B – interest rateIn %Loan B – termIn monthsLoan B – feesAmount in your currency

### What each result means

- **Loan A – monthly payment** = pmt([Loan A – interest rate]÷1200, [Loan A – term], [Loan amount])
- **Loan B – monthly payment** = pmt([Loan B – interest rate]÷1200, [Loan B – term], [Loan amount])
- **Loan A – total cost (interest + fees)** = [Loan A – monthly payment]×[Loan A – term] - [Loan amount] + [Loan A – fees]
- **Loan B – total cost (interest + fees)** = [Loan B – monthly payment]×[Loan B – term] - [Loan amount] + [Loan B – fees]
- **Loan A – APR** = rate([Loan A – term], 0 - [Loan A – monthly payment], [Loan amount] - [Loan A – fees])×1200
- **Loan B – APR** = rate([Loan B – term], 0 - [Loan B – monthly payment], [Loan amount] - [Loan B – fees])×1200
- **Difference in total cost** = abs([Loan A – total cost (interest + fees)] - [Loan B – total cost (interest + fees)])

## Worked example

Inputs — Loan amount: $15,000; Loan A – interest rate: 9 %; Loan A – term: 36 months; Loan A – fees: $0; Loan B – interest rate: 7.5 %; Loan B – term: 60 months; Loan B – fees: $450.

Results — Loan A – monthly payment = $477.00; Loan B – monthly payment = $300.57; Loan A – total cost (interest + fees) = $2,171.86; Loan B – total cost (interest + fees) = $3,484.15; Loan A – APR = 9 %; Loan B – APR = 8.792 %; **Cheaper overall = Loan A**; Difference in total cost = $1,312.30.

## FAQ

**How do I compare two loans?**
Compare APR and total cost, not just the monthly payment.

**Is a longer loan more expensive?**
Usually – lower payments but more total interest.

**Should I include fees?**
Yes – origination fees can make a low-rate loan more expensive.

**What formula does the Loan Comparison Calculator use?**
Payment = pmt(rate ÷ 12, months, amount).


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)