Loan Comparison Calculator
Use this calculator to sort through the monthly payments, fees and other costs when comparing loan options.
How the loan comparison calculator works
It fully amortizes two loan offers and lines up their monthly payment, total interest and total cost, then names the cheaper option overall. A shorter, higher-rate loan can still win on total cost, which the side-by-side makes obvious.
Worked example: with loan amount of $25,000, loan a — rate of 6.50% and loan a — term (years) of 5, the loan comparison calculator shows lower total cost of Loan B.
- Loan A payment
- $489.15
- Loan A total interest
- $4,349
- Loan B payment
- $609.15
- Loan B total interest
- $4,239
The formula
For each loan, Payment = P × r ÷ (1 − (1 + r)⁻ⁿ) and Total cost = payment × n. The winner has the lower total cost.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the loan comparison calculator
Should I choose the loan with the lower payment?
Not necessarily. A lower payment often comes from a longer term that costs much more in total interest. Compare total cost, which this tool highlights.
How do I compare loans with different terms fairly?
Look at total interest and total cost, not just the monthly figure. This calculator computes both for each loan so the trade-off is clear.
What if the rates and terms both differ?
That is exactly what this is for — it folds rate and term together into one total-cost number for each offer so you can pick the genuinely cheaper one.
Is the Loan Comparison Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.