Loan Comparison Calculator

Compare up to 3 loan offers side by side. Enter each offer below and the table updates as you type.

Plan A

Plan B

Plan C

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Side by side comparison

How this calculator works

Enter up to 3 loan offers, one per plan. Each plan has its own loan amount, annual interest rate, term in years, and upfront fees. The calculator works out the fixed monthly payment, total interest, and total cost for each plan and puts them in one table, so you can compare offers row by row. The lowest monthly payment, lowest total interest, and lowest total cost are each marked, and the conclusion names the plan with the lowest total cost.

Results are estimates for education only and are not financial advice.

Why is the lowest monthly payment not always the cheapest loan?

A longer term spreads the loan over more payments, so each payment is smaller, but interest keeps building for more years. The total interest can be far higher even though the monthly payment looks friendlier. Always check the total cost row before you pick an offer.

Loan payment formula

M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). Here M is the monthly payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (loan term in years × 12). Total interest = M × n − P. Total cost = P + total interest + upfront fees.

How the comparison is calculated, step by step

1. For each plan, divide the annual interest rate by 12 to get the monthly rate, and multiply the loan term in years by 12 to get the number of payments.
2. Apply the amortization formula to the loan amount, monthly rate, and number of payments to get the fixed monthly payment for that plan.
3. Multiply the monthly payment by the number of payments and subtract the loan amount to get total interest, then add the loan amount and the upfront fees to get total cost.
4. Compare the three plans row by row, mark the lowest monthly payment, lowest total interest, and lowest total cost, and name the plan with the lowest total cost as the cheapest overall.

Worked example

Plan A borrows $250,000 at 6.5% for 30 years with no upfront fee: the monthly payment is $1,580.17, total interest is $318,861.22, and total cost is $568,861.22. Plan B borrows the same $250,000 at 6.0% for 15 years with a $2,000 fee: the payment is $2,109.64 a month, total interest is $129,735.57, and total cost is $381,735.57. Plan C borrows $240,000 at 7.0% for 30 years with a $5,000 fee: the payment is $1,596.73 a month, total interest is $334,821.36, and total cost is $579,821.36. Plan A has the lowest monthly payment, but Plan B has the lowest total cost, so the cheapest loan is not always the one with the smallest payment.

Should upfront fees change which loan I pick?

Yes. Two offers with the same rate can cost different amounts once fees are added. This calculator adds upfront fees into total cost, so a low rate offer with high fees does not get an unfair advantage. Compare the total cost row, not the rate alone.

What if two plans have the same loan amount and rate but different terms?

The shorter term has a higher monthly payment but much lower total interest, because the balance is paid down faster and interest has fewer years to build. If you can afford the higher payment, the shorter term usually wins on total cost.

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