How the Loan Comparison Calculator works
Compare two loan options side by side. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this loan comparison calculator when you have two loan offers and want to compare payment and total interest side by side. It is useful when one offer has a lower rate but a different term.
Formula
Cost difference = total repayment for loan A - total repayment for loan B
- Each loan has its own amount, rate and term.
- Monthly payments are estimated separately.
- Total repayment compares payment amount multiplied by term length.
Worked example
For two $25,000 loan offers, one at 8% for 5 years and one at 6.5% for 4 years, the calculator compares monthly payment and total interest.
Common mistakes
- Choosing the lowest monthly payment without checking total repayment.
- Comparing loans with different fees but not adding those fees.
- Ignoring whether a higher payment fits comfortably in the budget.
FAQs
Can the lower rate still have a higher payment?
Yes, if the lower-rate loan has a shorter term.
Should I compare total interest or monthly payment?
Use both. Monthly payment affects cash flow, while total interest shows long-term cost.
Does this include lender fees?
No. Add fees to the loan amount or compare them separately.