Loan Comparison Calculator
Put two loan offers side by side and see which costs less over its full term, fees included.
A loan comparison calculator works out two offers on the same terms so you can see the full cost of each. Borrowing $20,000 over 5 years at 8% with no fees costs $24,331.67 in all. At 7% with $600 of fees the payment drops from $405.53 to $396.02, yet the total is $24,361.44, against $24,331.67 at 8%, so the 7% offer costs $29.77 more once its fee is counted.
This calculator is for general education. It is not financial advice and not a loan offer. It compares fixed-rate loans paid on schedule for their full term, adds only the upfront fees you enter, and leaves out variable rates, insurance and penalties. Each lender's written disclosure is the final word on cost.
Rates 0 to 36%, terms 1 to 40 whole years. Fees are what you pay up front to get the loan, such as an origination fee. If a fee is added to the loan balance, put it in the amount instead.
Over the full term
Loan A costs $29.77 less over its full term
| Loan A | Loan B | |
|---|---|---|
| Monthly payment | $405.53 | $396.02 |
| Number of payments | 60 | 60 |
| Total interest | $4,331.67 | $3,761.44 |
| Upfront fees | $0.00 | $600.00 |
| Total cost | $24,331.67 | $24,361.44 |
Total cost is every payment plus upfront fees, assuming each loan runs its full term with no extra payments. A lower payment can still cost more in total when the term is longer.
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About the Loan Comparison Calculator
The rate on a loan offer is only part of its price. Lenders also charge upfront fees, such as an origination fee taken from the loan or paid at signing, and the term decides how many months of interest you pay. This calculator works out each loan with the standard fixed-rate payment formula, adds the fees, and compares the total cost: every payment plus the fees, assuming each loan runs its full term with no extra payments. In the example above, the 7% loan has the lower payment and saves $4,331.67 - $3,761.44 = $570.23 of interest, but its $600 fee more than cancels that. Stretch the 7% loan to 7 years and the payment falls to about $302, while the total cost climbs to about $25,956, roughly $1,624 more than the 5-year 8% loan. That is the trade-off of a longer term: a smaller monthly figure in exchange for more interest overall. If you plan to pay a loan off early, the fee matters more, because you pay all of it but only part of the interest. Enter the interest rate from each written offer and its fees separately, because the APR on a disclosure already includes some of those fees.
Frequently asked questions
How do I compare two loan offers?+
Enter each loan's amount, interest rate, term and upfront fees. The calculator shows the monthly payment, total interest and total cost of each, and which costs less over its full term. Comparing total cost, not just the payment, keeps a longer term or a large fee from hiding the real price.
Should I count fees if they are added to the loan?+
If the fee is added to the balance instead of paid up front, enter the larger loan amount and leave the fee field at zero, because you will pay interest on it. If the lender takes it out of the money you receive, enter it as an upfront fee.
Is a lower interest rate always cheaper?+
No. A lower rate with a bigger fee or a longer term can cost more in total. In the example on this page, 7% with a $600 fee costs $29.77 more than 8% with no fee over the same 5 years.
What does this comparison leave out?+
It assumes fixed rates, payments made on schedule and no prepayment. Variable rates, late fees, insurance and the value of money over time are left out, so read each offer's disclosure for the full terms.
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