Loan Comparison Calculator

Evaluate two loan offers side-by-side. Enter loan amount, APR, and term to compare monthly payments, total cost, and interest paid to decide which offer fits your budget.

Loan Option A

Loan Option B

Please enter positive values for loan amounts, APR, and term (in years).

Comparison results

Loan A

Monthly payment

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Total interest paid

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Loan B

Monthly payment

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Total interest paid

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How the comparison works

Each loan is priced using the standard amortization formula with fixed payments. We use:

\( P = \dfrac{L \cdot r}{1 - (1+r)^{-n}} \)
Where \( L \) is loan amount, \( r \) the monthly interest rate (APR/12), and \( n \) the number of payments.

The calculator then multiplies the payment by the number of payments to get total cost, subtracting the original principal to show total interest paid.

What to compare beyond the payment

  • APR: Reflects both interest rate and fees, making it the best “apples-to-apples” metric.
  • Term length: Longer terms lower the payment but increase total interest. Shorter terms do the opposite.
  • Fees: Origination or underwriting fees can shift the true cost of the loan even if APRs are similar.

Frequently asked questions

Can I add fees to the comparison?

Enter the fee-adjusted loan amount (principal + financed fees) to reflect the true borrowed amount. You can run multiple scenarios quickly and compare.

What if one loan has a lower payment but higher interest?

That usually means the term is longer. Use the total interest output to decide whether the lower monthly payment is worth the extra overall cost.

Can I compare more than two loans?

Run the calculator multiple times and note the results. You can also duplicate the page in your browser to keep multiple comparisons open.

Tool developed by Ugo Candido. Finance content reviewed by the CalcDomain Editorial Board.
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