Loan Comparison Calculator
Compare two loan offers on the same amount side by side. See each monthly payment and total interest, and find out which loan is cheaper.
Calculator by Toolsloft ↗- Payment A
- $483.32
- Interest A
- $3,999.20
- Payment B
- $402.62
- Interest B
- $3,988.88
- Cheaper
- B
This calculator places two loan offers on the same borrowed amount side by side, showing each monthly payment and total interest. Use it when a lower rate comes with a longer term, where the cheaper monthly payment can still cost more over the life of the loan.
How this is calculated
It computes each offer with the standard amortizing payment formula, Payment = P*r*(1+r)^n / ((1+r)^n - 1), then flags whichever loan has the lower total interest paid across its full term as the cheaper option.
How to use
- Enter the loan amount you want to borrow.
- Enter the rate and term in months for offer A and offer B.
- Compare the monthly payments and total interest, and see which loan is cheaper.
Examples
- $25,000: 6% / 60 mo vs 5% / 72 mo:
B is cheaper ($3,988.88 vs $3,999.20) - Lower rate but longer term:
compare total interest, not just rate
FAQ
- How do you decide which loan is cheaper?
- We compare the total interest paid over the full term of each loan. The offer with the lower total interest is flagged as cheaper.
- Why can a lower rate cost more overall?
- A longer term means more months of interest. A loan with a lower rate but a longer term can end up costing more total interest than a higher-rate, shorter-term loan.
- Should I just pick the lower monthly payment?
- Not always. A lower monthly payment often comes from a longer term, which usually means more total interest. Look at both the payment and the total interest before deciding.