Loan comparison calculator
This loan comparison calculator lets you enter two offers and see their payments, total interest and total cost side by side.
Compare the total, not just the payment
A lower payment is not always cheaper. The offer with the longer term often has the smaller payment and the larger total interest. In the preset example, Loan B has a lower rate but a longer term, so compare the interest line before choosing.
Include the fees
If one offer has an origination fee or add-on, add it to the amount for that loan so the comparison is fair, or compare APRs rather than the quoted rates. A 3% fee can erase most of a half-point rate advantage on a short loan.
The two loans compared
Loan A ($20,000 at 7.5% for 5 years) costs $400.76 a month and $4,046 in interest. Loan B ($20,000 at 6.9% for 6 years) costs $340.02 a month and $4,481 in interest. Loan A costs less in total, by $436, while its monthly payment is higher by $60.74.
| Loan A | Loan B | |
|---|---|---|
| Amount | $20,000 | $20,000 |
| Rate | 7.5% | 6.9% |
| Term | 5 years | 6 years |
| Monthly payment | $400.76 | $340.02 |
| Total interest | $4,046 | $4,481 |
| Total paid | $24,046 | $24,481 |
Frequently asked questions
What should I compare between two loans?
Compare the APR, the term, the monthly payment, the total interest, any fees and whether there is a prepayment penalty.
Is the lower payment always better?
No. A longer term lowers the payment but usually raises total interest.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.