Loan Comparison

Enter two loan offers and see which costs less each month, and over the whole term.

Your numbers

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Which loan wins

Loan A payment
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Compares monthly payment and total interest. A longer term can lower the payment while raising total interest.
About this calculator

Loan Comparison

A loan comparison calculator puts two offers side by side, showing the monthly payment and total interest for each so you can see which is genuinely cheaper, not just which has the smaller payment.

Payment vs. total cost

A lower monthly payment often just means a longer term, which can cost more in total interest. Comparing offers only on the payment can mislead; the total interest over the life of each loan is the honest measure. The calculator shows both so a low payment with a high lifetime cost can't hide.

Rate, term, and fees together

When comparing, hold the loan amount equal and look at the rate and term together. A slightly higher rate on a shorter term can still cost less overall. In the real world also weigh fees and points, which the headline rate leaves out, comparing APRs captures those.

How to use it

  1. Enter the loan amount.
  2. Enter the rate and term for Loan A.
  3. Enter the rate and term for Loan B.
  4. Compare the payments and total interest to see which wins.

Frequently asked questions

How do I compare two loans fairly?

Hold the loan amount constant and compare both the monthly payment and the total interest. The loan with the lowest total cost wins, even if its payment is higher.

Is a lower monthly payment always better?

No. A lower payment often comes from a longer term, which usually means more total interest. Always check the lifetime cost, not just the payment.

Should I compare interest rate or APR?

APR includes certain fees and points, so it's the better basis for comparing offers with different cost structures.

See the exact formula and a worked example on our methodology page.

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