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
| Field | What to enter |
|---|---|
| Loan amount | Amount in your currency |
| Loan A – interest rate | In % |
| Loan A – term | In months |
| Loan A – fees | Amount in your currency |
| Loan B – interest rate | In % |
| Loan B – term | In months |
| Loan B – fees | Amount 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)])
Formula
Payment = pmt(rate ÷ 12, months, amount)Total cost = payments × months + feesAPR = rate at which (amount − fees) equals the present value of the paymentsWorked 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.
Frequently asked questions
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).