Loan Comparison Calculator

Choosing the right loan can save you thousands. Our Loan Comparison Calculator makes it easy to evaluate up to three loan offers simultaneously. Input the details for each loan – including amount, interest rate, term, and fees – to see a clear side-by-side breakdown of monthly payments, total interest, and the overall cost. Make a confident, informed decision with our free tool.

Compare Your Loan Offers

Loan 1 Details
Loan 2 Details
Loan 3 Details (Optional)

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How to Use This Calculator

  1. Enter Loan 1 Details: Input the Loan Amount, Interest Rate, Loan Term, and any Fees for your first offer.
  2. Enter Loan 2 (and 3) Details: Repeat the process for your second and (optionally) third loan offers. Fill in details only for loans you want to compare.
  3. Calculate & Compare: Click "Compare Loans" to see a side-by-side table showing the Monthly Payment, Total Interest, Total Fees, and Total Cost for each option.
  4. Review Schedules: Explore the individual amortization schedules (available via tabs) for a detailed payment-by-payment breakdown for each loan.

Key Factors to Consider When Comparing Loans

When evaluating loan offers, it's crucial to look beyond just the advertised interest rate or monthly payment. Consider the following:

  • Annual Percentage Rate (APR): This is often a better comparison point than the interest rate alone, as it includes some of the fees associated with the loan, giving a truer picture of the annual cost.
  • Loan Term: A longer term typically means lower monthly payments but higher total interest paid. A shorter term means higher payments but less interest overall.
  • Fees: Look for origination fees, application fees, closing costs (for mortgages), prepayment penalties, and other charges. These can significantly impact the total cost.
  • Total Interest Paid: Calculate the total interest you'll pay over the life of each loan.
  • Total Cost of Loan: This is the sum of the principal borrowed, all interest paid, and all fees. It's the ultimate measure of what the loan will cost you.
  • Fixed vs. Variable Rate: Fixed rates remain the same, offering predictable payments. Variable rates can change, meaning your payment could rise or fall.

Understanding the True Cost of a Loan

The "true cost" of a loan isn't just the amount you borrow. It's the principal plus all the interest you'll pay and any fees associated with obtaining the loan. Fees can sometimes be substantial, so factoring them into your comparison is vital. For example, a loan with a slightly lower interest rate but very high origination fees might end up being more expensive than a loan with a marginally higher rate but no fees, especially if you don't keep the loan for its full term.

Common Loan Comparison Scenarios

  • Mortgages: Comparing different lenders, interest rates, terms (e.g., 15-year vs. 30-year), and the impact of discount points.
  • Auto Loans: Evaluating offers from dealerships vs. banks/credit unions, varying terms, and the effect of down payments.
  • Personal Loans: Comparing rates and fees for debt consolidation, home improvements, or other large expenses.

How to Negotiate Better Loan Terms

Don't assume the first offer you get is the best. You can often negotiate:

  • Improve Your Credit Score: Before applying for significant loans, work on improving your credit score.
  • Shop Around: Get quotes from multiple lenders. Let them know you are comparing offers.
  • Negotiate the Interest Rate: Especially if you have good credit or competing offers.
  • Ask About Fees: Inquire if any fees can be waived or reduced.
  • Consider a Co-signer: If your credit is weak, a co-signer with good credit might help you qualify for better terms (but they become equally responsible for the debt).

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Frequently Asked Questions (FAQ)

FAQ Index

Look beyond just the monthly payment. Compare the Annual Percentage Rate (APR), which includes fees, the total interest paid over the life of the loan, the total cost (principal + interest + fees), and the loan term. Use a loan comparison calculator to see these figures side-by-side.

It depends on how long you plan to keep the loan. A loan with a lower rate but higher fees might be cheaper long-term. A loan with lower fees but a higher rate might be better if you plan to pay it off quickly. Calculate the total cost for both to find the break-even point.

Shorter terms have higher monthly payments but lower total interest costs. Longer terms have lower payments but higher total interest. Choose the shortest term with a payment you can comfortably afford.

Mortgage points are fees paid upfront to lower your interest rate. One point typically costs 1% of the loan amount. When comparing, calculate if the interest savings over the time you expect to stay in the home outweigh the upfront cost of the points.

APR (Annual Percentage Rate) represents the true annual cost of borrowing. It includes the interest rate plus most fees (like origination fees). Comparing APRs gives a more accurate "apples-to-apples" comparison than just comparing interest rates.

Fixed-rate loans offer payment stability. Adjustable-rate mortgages (ARMs) start lower but can increase later. Compare the initial ARM rate to the fixed rate and consider how long you'll keep the loan and your tolerance for potential payment increases.

Common fees include origination fees, application fees, underwriting fees, appraisal fees (for mortgages), title fees, and sometimes monthly service fees. Always ask for a full fee breakdown.

Shopping around can save significant money, especially on large loans like mortgages. Even a small difference in interest rate (0.25% or 0.5%) can add up to thousands of dollars over the loan term.

A broker can save time by shopping multiple lenders for you. However, they may not have access to all lenders, and they earn a commission. Comparing offers yourself alongside a broker can ensure you see the full picture.

Your credit score heavily influences the interest rates and terms lenders offer you. A higher score means lower risk for lenders, resulting in better loan options. Comparing offers is still crucial, but your score sets your baseline range.