FINBIZTOOLS
Loan Comparison Calculator
Compare two or three loan offers side by side. Enter the amount, rate, term and any upfront fees for each offer to see every offer's monthly payment, total interest and total cost, with the cheapest one clearly identified.
Private by design · Inputs and downloads stay in your browser
Changes the currency symbol and number format only. Amounts are not converted.
Enter at least two loan offers; leave a slot's amount at 0 if unused. Each offer uses a standard reducing-balance monthly payment; fees are added once, not financed.
How to use the Loan Comparison Calculator
- Enter the amount, interest rate, term and any upfront fees for Loan 1 and Loan 2.
- Optionally fill in Loan 3 as well; leave its amount at 0 to compare only two offers.
- Select Calculate to see every offer's figures side by side and which one costs the least overall.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
Why total cost, not just the payment
The offer with the lowest monthly payment is not always the cheapest overall — a longer term or a higher fee can raise the total cost even when the monthly figure looks smaller.
This calculator adds each offer's total interest and upfront fees together into one total cost figure, so offers with different terms and fee structures can be compared fairly.
How the calculation works
Loan comparison formula
Monthly payment = amount × r ÷ [1 − (1 + r)^(−n)]
Total cost = (monthly payment × term) + fees
- r is the monthly rate, the annual rate ÷ 1200, for that offer.
- n is that offer's term in months.
Each offer is calculated independently with its own amount, rate, term and fees, then ranked by total cost. Amounts are shown without a currency symbol because the arithmetic is identical in any currency. The currency selector only changes the symbol and number format; it never converts amounts.
Loan comparison calculation example
Two offers for a 3,000,000 loan over 240 months: Loan 1 at 8.5% with a 30,000 fee, and Loan 2 at 8% with a 60,000 fee:
| Loan 1 | 8.5%, 30,000 fee |
|---|---|
| Loan 2 | 8%, 60,000 fee |
| Loan 1: total cost | 6,278,327.28 |
|---|---|
| Loan 2: total cost | 6,082,368.50 |
| Lowest total cost | 6,082,368.50 |
| Savings vs. the most expensive offer | 195,958.78 |
Despite its larger upfront fee, Loan 2's lower rate makes it the cheaper offer overall. Amounts are shown without a currency symbol because the arithmetic is identical in any currency. The currency selector only changes the symbol and number format; it never converts amounts.
Assumptions and limitations
Assumptions
- Each offer uses a fixed nominal annual rate and a standard reducing-balance monthly payment for its own term.
- Fees are added once, as an upfront cost, not spread into the monthly payment.
- At least two offers must be entered; a third is optional.
Limitations and why results can differ
- Only interest and the fees you enter are compared. Insurance, taxes and other charges that differ between lenders are not included unless you add them to the fee field yourself.
- A shorter-term, higher-payment loan can have a lower total cost even though it is harder to afford monthly; consider both the payment and the total cost.
- This is an informational comparison, not a loan offer or approval from any lender.
Frequently asked questions
Do I have to fill in all three loans?
No. Loan 3 is optional; leave its amount at 0 to compare only Loan 1 and Loan 2.
Why might the loan with the lower payment not be cheapest?
A longer term lowers the monthly payment but usually increases total interest, and fees add to the total cost regardless of the payment size.
Are fees financed into the loan?
No. Fees are added once to the total cost, not spread across monthly payments, matching how many upfront fees are actually charged.
Can I compare loans in different currencies?
The currency selector changes the display symbol only; enter all offers in the same currency for the comparison to be meaningful, since no conversion is performed.
Methodology
Loan 1 and Loan 2 are required (amount from 1 to 1,000,000,000); Loan 3 is optional and is skipped when its amount is left at 0. Every field on every slot, used or not, is validated (rate 0% to 50%, term 0 to 600 whole months, fees 0 to 100,000,000), so an invalid value in an unused slot is still rejected.
Each active offer's monthly payment is computed independently with the standard reducing-balance EMI formula for its own amount, rate and term; total cost adds that offer's total interest and its fees. Offers are then ranked by total cost only, not by monthly payment. Rounding is applied only for display. The calculation runs in your browser and inputs are not sent to a server.
Last reviewed:
Disclaimer
Results are estimates based on the assumptions you enter. Actual repayments depend on your lender’s terms, fees and rate structure. This page is for information only and is not lending or financial advice. Read the full Disclaimer.
Explore this topic
This tool is part of Loans and Mortgages.
A common order: check what you can afford, compare loan offers, then see how extra payments change total interest.
- Mortgage Affordability Calculator
- Loan Comparison Calculator (this page)
- Mortgage Extra Payment Calculator