Loan Comparison Calculator

The loan comparison calculator allows you to compare multiple loan offers side by side by calculating the monthly payment, total interest, and total cost for each loan. It uses the standard loan amortization formula to determine exact payment amounts and helps you identify which loan offer provides the best value based on your specific situation.

When comparing loans, consider the interest rate, loan term, monthly payment amount, total interest paid, origination fees, and other closing costs. A lower interest rate doesn't always mean the best deal if there are high fees. Look at the total cost of the loan (principal + interest + fees) to determine the true cost of borrowing.

Not necessarily. While a lower interest rate typically means less interest paid over time, you must also consider loan fees, the loan term, and monthly payment affordability. A loan with a slightly higher rate but lower fees might cost less overall. Additionally, a shorter term at a higher rate might save money compared to a longer term at a lower rate.

Loan fees, including origination fees, application fees, and closing costs, directly increase the total cost of borrowing. These upfront costs should be factored into your comparison because a loan with a lower interest rate but high fees might end up costing more than a loan with a slightly higher rate and minimal fees.

Not always. The lowest monthly payment often comes from loans with longer terms, which means you'll pay significantly more interest over the life of the loan. While lower payments improve monthly cash flow, you should balance affordability with the total cost of the loan. Consider whether you can afford a higher payment to save on total interest.

Fixed-rate loans maintain the same interest rate throughout the loan term, providing predictable monthly payments. Variable-rate loans have interest rates that can change based on market conditions, which means your monthly payment can increase or decrease. When comparing loans, variable rates may start lower but carry the risk of future increases.

Longer loan terms result in lower monthly payments but significantly higher total interest paid over the life of the loan. Shorter terms have higher monthly payments but lower total interest costs. For example, a 60-month loan will cost substantially more in interest than a 36-month loan at the same interest rate, even though monthly payments are lower.

Yes, you can compare loans with different amounts, which is useful when lenders offer various loan sizes at different rates. However, make sure you're borrowing the amount you actually need. Borrowing more than necessary just because it's available will cost you more in interest, even if the rate is competitive.

APR (Annual Percentage Rate) represents the true annual cost of borrowing, including both the interest rate and fees, expressed as a percentage. The interest rate only reflects the cost of borrowing the principal. APR provides a more accurate comparison between loans because it includes fees that vary between lenders.

This calculator provides accurate estimates based on the information you enter, using standard loan amortization formulas. However, actual loan costs may vary slightly due to how lenders calculate interest (daily vs. monthly), payment due dates, and additional fees not captured in the calculator. Always verify final numbers with your lender before committing.

Refinancing can be beneficial if you find a loan with significantly better terms, but consider the costs involved. Calculate the breakeven point by dividing refinancing costs by monthly savings. If you plan to keep the loan past the breakeven point and the total interest savings exceed refinancing costs, it may be worth refinancing.

If two loans have similar total costs, consider other factors like lender reputation, customer service quality, prepayment penalties, flexibility in payment dates, and any additional benefits like rate discounts for autopay. Also consider the application process ease and approval timeline if you need funds quickly.