# Mortgage Comparison Calculator

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

> The mortgage comparison calculator puts two mortgage offers side by side – rate, term, points and fees – and compares monthly payments, total interest, total cost and the effective APR to show which is cheaper.

## Inputs

- Loan amount
- Years you expect to keep the loan
- Mortgage A – rate (%)
- Mortgage A – term (years)
- Mortgage A – points (%)
- Mortgage A – fees
- Mortgage B – rate (%)
- Mortgage B – term (years)
- Mortgage B – points (%)
- Mortgage B – fees

## Results

- Mortgage A – monthly payment
- Mortgage B – monthly payment
- Mortgage A – cost over the years you keep it
- Mortgage B – cost over the years you keep it
- Mortgage A – APR
- Mortgage B – APR
- Cheaper over your time frame
- Difference

## Formula

```
Payment = pmt(rate ÷ 12, months, loan)
Total cost = payments × months + points + fees
APR = rate equating (loan − points − fees) with the payments
```

## Explanation

Comparing offers by rate alone can mislead: a lower rate with more points or fees may cost more if you sell or refinance early. Comparing total cost over the years you expect to keep the loan is the fairest test.

### How to use the Mortgage Comparison Calculator

- **Loan amount**
- **Years you expect to keep the loan**
- **Mortgage A – rate**
- **Mortgage A – term**
- **Mortgage A – points**
- **Mortgage A – fees**
- **Mortgage B – rate**
- **Mortgage B – term**
- **Mortgage B – points**
- **Mortgage B – fees**

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

### How it works

Enter the loan amount, the years you expect to keep the loan, and the rate, term, points and fees of each offer.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyYears you expect to keep the loanA numberMortgage A – rateIn %Mortgage A – termIn yearsMortgage A – pointsIn %Mortgage A – feesAmount in your currencyMortgage B – rateIn %Mortgage B – termIn yearsMortgage B – pointsIn %Mortgage B – feesAmount in your currency

### What each result means

- **Mortgage A – monthly payment** = pmt([Mortgage A – rate]÷1200, [Mortgage A – term]×12, [Loan amount])
- **Mortgage B – monthly payment** = pmt([Mortgage B – rate]÷1200, [Mortgage B – term]×12, [Loan amount])
- **Mortgage A – cost over the years you keep it** = [Mortgage A – monthly payment]×min([Years you expect to keep the loan], [Mortgage A – term])×12 + [Loan amount]×[Mortgage A – points]÷100 + [Mortgage A – fees] - ([Loan amount] - max(bal([Loan amount], [Mortgage A – rate]÷1200, [Mortgage A – term]×12, min([Years you expect to keep the loan], [Mortgage A – term])×12), 0))
- **Mortgage B – cost over the years you keep it** = [Mortgage B – monthly payment]×min([Years you expect to keep the loan], [Mortgage B – term])×12 + [Loan amount]×[Mortgage B – points]÷100 + [Mortgage B – fees] - ([Loan amount] - max(bal([Loan amount], [Mortgage B – rate]÷1200, [Mortgage B – term]×12, min([Years you expect to keep the loan], [Mortgage B – term])×12), 0))
- **Mortgage A – APR** = rate([Mortgage A – term]×12, 0 - [Mortgage A – monthly payment], [Loan amount] - [Loan amount]×[Mortgage A – points]÷100 - [Mortgage A – fees])×1200
- **Mortgage B – APR** = rate([Mortgage B – term]×12, 0 - [Mortgage B – monthly payment], [Loan amount] - [Loan amount]×[Mortgage B – points]÷100 - [Mortgage B – fees])×1200
- **Difference** = abs([Mortgage A – cost over the years you keep it] - [Mortgage B – cost over the years you keep it])

## Worked example

Inputs — Loan amount: $350,000; Years you expect to keep the loan: 7; Mortgage A – rate: 6.5 %; Mortgage A – term: 30 years; Mortgage A – points: 0 %; Mortgage A – fees: $3,000; Mortgage B – rate: 6 %; Mortgage B – term: 30 years; Mortgage B – points: 1.5 %; Mortgage B – fees: $3,500.

Results — Mortgage A – monthly payment = $2,212.24; Mortgage B – monthly payment = $2,098.43; Mortgage A – cost over the years you keep it = $155,284.86; Mortgage B – cost over the years you keep it = $148,755.71; Mortgage A – APR = 6.583 %; Mortgage B – APR = 6.238 %; **Cheaper over your time frame = Mortgage B**; Difference = $6,529.15.

## FAQ

**How do I compare mortgage offers?**
Compare the APR and total cost over the years you expect to keep the loan.

**Are points worth it?**
Only if you keep the loan past the break-even point.

**Should I compare 15- and 30-year loans?**
Yes – 15-year loans have higher payments but far less total interest.

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


## Sources

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