Loans & Debt

Loan Comparison Calculator

Put two offers side by side.

Your numbers

Symbol only: enter amounts in the currency you pick.
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Your results

Offer A monthly payment
Offer A monthly payment
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Offer B monthly payment
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Offer A total cost (interest + fees)
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Offer B total cost (interest + fees)
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Cheaper overall
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Loan Comparison Calculator by TheCalcTools

How the Loan Comparison Calculator works

Enter the amount and each offer’s rate, term and upfront fees.

The calculator finds each monthly payment and the total interest plus fees.

It names the cheaper offer over the full term.

The formula

payment = P × r ÷ (1 − (1 + r)^−n)total cost = payments − principal + fees

Worked example

Using the default values shown in the calculator:

Loan amount$20000
Offer A rate (APR %)7.5 %
Offer A term (years)5
Offer A fees$400
Offer B rate (APR %)8.5 %
Offer B term (years)4
Offer B fees$0
  1. Offer A: $400.76 a month for 5 years, with $400 in fees.
  2. Offer B: $492.97 a month for 4 years, with no fees.
  3. Total cost: A $4,446, B $3,662. Offer B is cheaper.

Result:

Offer A monthly payment$400.76
Offer B monthly payment$492.97
Offer A total cost (interest + fees)$4,446
Offer B total cost (interest + fees)$3,662
Cheaper overallOffer B

Frequently asked questions

Is the lower payment always better?

Not necessarily. A longer term lowers the payment but usually costs more interest. Compare total cost and your monthly budget.

What if I plan to repay early?

Check for prepayment penalties and compare the cost for the period you expect to hold the loan.

Sources and further reading

More in Loans & Debt · All calculators

This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.