Loan Comparison Calculator
A lower monthly payment does not always mean a cheaper loan. Enter two offers to compare their monthly payments, total interest and total cost, and see which one actually costs you less.
Loan Comparison Calculator
How this calculator works
Two loans can have the same amount and very different costs. The APR captures the rate plus most fees, the term decides how long interest accrues, and upfront fees add to what you pay regardless of the rate. Comparing only the monthly payment hides those differences, because a longer term lowers the payment while raising total interest.
This tool computes the monthly payment for each offer from the standard amortisation formula, then totals the interest over the term and adds the upfront fees to get a total cost. The cheaper offer is the one with the lower total cost. The monthly payment difference and total cost difference are shown so you can weigh affordability against overall price.
The comparison assumes the same amount is borrowed under both offers and that all payments are made on time. It does not model rate changes, late fees or prepayment penalties. If one offer has a variable rate, the total cost shown is only valid while that rate holds.
Frequently asked questions
Is the lower monthly payment always better?
No. A longer term or a smaller down payment can lower the monthly payment while raising total interest. Compare the total cost row to see the real difference.
Should I compare APR or total cost?
Both. The APR is the cleanest way to compare the rate plus fees for similar terms. Total cost is the bottom line when the terms or amounts differ.
How are fees treated here?
Fees are added to the total cost and are not financed into the loan. If a lender finances the fees, add them to the amount so the payment and interest reflect that.
Does this account for a variable rate?
No. It assumes a fixed rate for the whole term. For a variable-rate offer, the total cost is an estimate that depends on how the rate moves.
Can I compare more than two offers?
Run the calculator again with the best offer from the first comparison against a third offer. That keeps the comparison clean and shows the lowest cost at each step.
Check your rate with a lending partner in about two minutes. Checking does not affect your credit score.
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