Free Online Loan Comparison Calculator
Compare monthly payments and total interest across multiple loans.
Loan offers
| Offer | Amount | APR % | Term | Fees |
|---|
Comparison
| Offer | Monthly payment | Total interest | Total cost | Payoff |
|---|
The cheapest option is highlighted by total cost, which includes interest and fees. A lower monthly payment can still cost more overall when the term is longer. Extra payments are applied to principal every month and shorten the payoff period; they are included in the monthly payment column.
About the Loan Comparison Calculator
Two loans can look almost identical on paper and still differ by thousands in total cost. A lower interest rate with a longer term may reduce the monthly payment while increasing the amount of interest paid over the life of the loan. A shorter term does the opposite. This calculator places up to four offers side by side and keeps the comparison consistent by using the same amount, the same currency, and the same optional extra payment for every row. Each offer still has its own APR, term, and fees, so you can model realistic quotes from different lenders.
How each offer is calculated
The monthly payment follows the standard amortisation formula. The annual percentage rate is divided by twelve to get a monthly rate, and the number of months is taken from the term you enter. When the APR is zero, the payment is simply the amount divided by the number of months. For a normal loan, each payment first covers the interest charged on the remaining balance and then reduces the principal. Early payments are therefore mostly interest, while later payments are mostly principal. The results table reports the scheduled monthly payment, the total interest, the total cost, and the number of months needed to repay the loan.
Fees and extra payments
Fees are added to the total cost so an offer with a low headline rate but a large origination fee does not appear artificially cheap. If you enter an optional extra monthly payment, the calculator simulates the loan month by month with that additional amount applied to principal. The monthly payment column shows the scheduled payment plus the extra amount, total interest falls, and the payoff period shortens. Because the extra payment applies to every offer, the comparison stays fair. In practice, confirm with each lender whether prepayment penalties or fee rules apply.
Choosing an offer
The row with the lowest total cost is highlighted automatically. That is a useful starting point, but it is not the only consideration. Check whether the monthly payment fits your budget, whether the rate is fixed or variable, whether fees are refundable, and whether the term matches how long you intend to keep the loan. A slightly more expensive loan with predictable payments can be the better choice for some borrowers. This tool is an estimate and does not constitute financial advice.
Frequently asked questions
Does the comparison include taxes and insurance?
No. It covers principal, interest, and the fees you enter. Mortgage escrow, insurance, and closing costs beyond the fee field are not included.
Why does a longer term sometimes look cheaper per month but cost more?
A longer term spreads the principal over more payments, which lowers the monthly amount, but interest keeps accruing on the larger outstanding balance for longer.
Can I compare loans with different amounts?
Yes, but the total cost comparison is only meaningful when the amounts are similar. For different amounts, compare the interest and fees rather than the raw totals.