Loan Comparison Calculator
Compare up to 3 different loan options to find the best deal for your needs.
About Loan Comparison
Comparing loans helps you find the most cost-effective option by analyzing interest rates, fees, and repayment terms. A lower interest rate doesn't always mean a better deal when you consider all factors.
Key Loan Comparison Factors
Total Cost = (Monthly Payment × Term) + Fees
Important factors to consider:
- Annual Percentage Rate (APR) - The true cost of borrowing including fees
- Monthly Payment - Affects your monthly budget
- Total Interest - The extra amount you'll pay over the loan term
- Loan Term - Longer terms mean lower payments but higher total interest
- Fees - Origination fees, processing fees, etc. that add to your cost
When to Compare Loans
- Mortgage shopping - Even small rate differences can save thousands
- Auto loans - Dealership financing vs. bank offers
- Personal loans - Compare banks, credit unions, and online lenders
- Student loans - Federal vs. private loan options
- Debt consolidation - Find the best terms to combine debts
Understanding APR vs. Interest Rate
The interest rate is the cost to borrow the principal amount, while APR (Annual Percentage Rate) includes both the interest rate and any fees to reflect the total cost of borrowing.
Example Comparison
Comparing two $20,000 loans:
- Loan A: 5% rate, 5-year term, $500 fee → $377.42/month, $2,645.48 interest, $23,145.48 total
- Loan B: 4.75% rate, 5-year term, $1,000 fee → $375.12/month, $2,507.20 interest, $23,507.20 total
While Loan B has a lower rate and payment, Loan A has a lower total cost due to lower fees.