Loan Comparison Calculator
Compare multiple loan offers side by side to find the best deal for your needs
The Loan Comparison Calculator helps you evaluate and compare multiple loan offers from different lenders. Whether you're shopping for an auto loan, personal loan, or mortgage, this tool allows you to input various loan terms and see which option offers the best value. Compare monthly payments, total interest costs, and overall loan expenses to make an informed financial decision.
Loan 1
Loan 2
How to Use This Calculator
1. Select Number of Loans: Choose how many loan offers you want to compare (2-4 loans).
2. Enter Loan Details: Fill in the loan amount, interest rate, term, and any origination fees for each loan.
3. Compare Results: Review the monthly payments, total interest, and total costs side by side.
4. Analyze Summary: Check which loan offers the best value based on your priorities.
Key Factors to Consider
• Monthly Payment: Choose based on your budget constraints
• Total Interest: Lower total interest saves money over time
• APR: Annual Percentage Rate includes fees and gives true cost comparison
• Loan Term: Shorter terms mean higher payments but less total interest
• Fees: Consider origination fees, prepayment penalties, and other costs
How Loan Calculations Work
Monthly Payment Formula: The monthly payment is calculated using the standard loan payment formula:
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
APR Calculation: The Annual Percentage Rate includes the interest rate plus any origination fees, providing a more accurate comparison of the true cost of each loan.
Example Comparison
Let's compare two $25,000 auto loans with different terms:
Loan A - Bank Offer
- Amount: $25,000
- Rate: 4.5% APR
- Term: 5 years
- Monthly Payment: $466
- Total Interest: $2,960
Loan B - Credit Union
- Amount: $25,000
- Rate: 3.9% APR
- Term: 5 years
- Monthly Payment: $459
- Total Interest: $2,540
In this example, Loan B saves $420 in total interest and $7 per month, making it the better choice.
Frequently Asked Questions
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus additional fees like origination fees, giving you the true cost of the loan.
Should I choose the loan with the lowest monthly payment?
Not necessarily. While lower monthly payments improve cash flow, they often come with longer terms that result in higher total interest costs. Consider your budget and long-term financial goals.
How do origination fees affect my loan comparison?
Origination fees are upfront costs that increase the total cost of your loan. They're included in the APR calculation, so comparing APRs gives you a more accurate picture of which loan costs less overall.
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Calculate home loan payments with taxes and insurance.
Refinance Calculator
Calculate potential savings from refinancing your loan.
APR Calculator
Calculate the true annual percentage rate of your loan.