Free loan comparison calculator
Compare two loan offers side by side — monthly payment, total interest, and total cost for different rates and terms, updated live, as you type.
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Fixed-rate amortized loans only. Does not include fees, insurance, or variable-rate features.
Results are estimates. Consult a professional.
How the loan comparison calculator works
The loan comparison calculator runs the standard amortization formula independently for each loan option, then lines up the results side by side. You can compare any two loans — same principal with different rates, same rate with different terms, or entirely different loan sizes. The key outputs are monthly payment, total interest, and total cost (principal + all interest), which together reveal the true trade-off between cash flow today and total money spent.
Worked example: $25k loan — Loan A (7%/60mo) vs Loan B (9%/48mo)
A borrower receives two offers on a $25,000 loan: Loan A at 7% APR over 60 months from a credit union, and Loan B at 9% APR over 48 months from their bank. Lower rate but longer term vs higher rate but shorter term — which costs less overall?
Side-by-side comparison: $25k and $50k at two rate/term combinations
Loan A = 7% APR / 60-month term. Loan B = 9% APR / 48-month term. Compare monthly payment, total interest, and total cost for both loan sizes.
| Loan Size / Option | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| $25k — Loan A (7%/60mo) | $495 | $4,702 | $29,702 |
| $25k — Loan B (9%/48mo) | $622 | $4,868 | $29,868 |
| $50k — Loan A (7%/60mo) | $990 | $9,403 | $59,403 |
| $50k — Loan B (9%/48mo) | $1,244 | $9,736 | $59,736 |
Source: CFPB loan comparison tool; standard amortization formula; Loan A saves $166 ($25k) or $333 ($50k) in total cost vs Loan B
Tips for comparing loan offers effectively
A lower monthly payment is appealing but can be a trap. The only way to know which loan is better for your situation is to compare both the monthly cash flow impact and the total money out of pocket over the life of each loan.
- Always compare total cost, not just monthly payment — a loan with a $50 lower payment can cost $2,000 more overall if the term is much longer; this calculator reveals that gap instantly.
- Get quotes within a 14-day window — multiple hard credit inquiries for the same loan type within 14 days count as a single inquiry under FICO scoring; shop aggressively without damaging your score.
- Watch for fees buried in APR — two loans at the same interest rate can have different APRs if one has origination fees; the loan with the higher APR costs more even if the rate looks identical.
- Factor in prepayment flexibility — if you might pay the loan off early, the loan with the longer term but no prepayment penalty may give you the best of both worlds: low required payment with the option to pay more.
- Model what happens if you invest the monthly savings — if Loan A saves you $100/month vs Loan B, investing that difference at a market return may outperform the interest saving from choosing Loan B's shorter term.
Accuracy and limitations
This calculator uses the standard amortization formula and assumes fixed rates and equal monthly payments for both loans. It does not account for origination fees, prepayment penalties, balloon structures, adjustable rates, or lender-specific day-count conventions. When comparing loans with fees, use the APR (which includes fees) rather than the stated interest rate to get a valid apples-to-apples comparison. For mortgages with points, a break-even analysis on the points paid vs rate reduction is an additional step not covered here.
Not financial advice — consult a financial professional for your specific situation.
Loan comparison terms defined
About this loan comparison calculator
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