Loan Comparison Calculator
Two or three loan offers side by side: the monthly payment, total interest, fees, APR and which one costs least overall.
Result…
How it's calculated
Payment = A × i ÷ (1 − (1 + i)^−n), i = rate ÷ 12 Total cost = payment × n − A + fees APR: solve (A − fees) = payment × (1 − (1 + j)^−n) ÷ j, APR = 12 × j
Puts offers for the same amount on one footing. The total cost is everything you pay beyond the amount borrowed: interest plus upfront fees. The APR folds the fees into a yearly rate, which is fairer than the headline rate when one offer has fees and another does not. The cheapest overall is not always the lowest payment.
Your numbers, step by step
About the Loan Comparison calculator
This loan comparison calculator puts two or three offers for the same amount side by side. For each offer you enter the interest rate, the term and any upfront fees, and it works out the monthly payment, the total interest, the total cost (interest plus fees) and an APR that folds the fees into a yearly rate. It then names the offer that costs least overall. A lower headline rate can still cost more once fees are added, and a longer term lowers the payment while raising the total, so seeing every figure together makes the trade-off clear. The working for each offer is shown with your numbers. To look at one offer's fees more closely, use the APR calculator.
How to use it
- Enter the “Loan amount” you want to borrow; it is the same for every offer.
- Choose two or three “Offers”.
- For each offer, enter its “interest rate”, “term” in years and “upfront fees”, using 0 when there are none.
- Read which offer costs least overall, then compare the monthly payments, total costs and APRs.
Worked example
Borrowing 20,000 over 5 years. Offer 1 is 7.5% with 300 of fees: 400.76 a month, a total cost of 4,345.54 and an APR of 8.139%. Offer 2 is 6.9% with 800 of fees: 395.08 a month, a total cost of 4,504.86 and an APR of 8.626%. Offer 2 has the lower rate and payment, but Offer 1 is 159.32 cheaper overall.
Updated
Questions people ask
How do I compare two loan offers?
Use the same amount for both and work out the total cost of each: every payment, minus the amount borrowed, plus the upfront fees. The lower total is cheaper overall; the APR gives the same comparison as a rate.
Why can a lower interest rate cost more?
Upfront fees are paid on top of the interest. A low rate with high fees can cost more than a slightly higher rate with small fees, as the worked example shows.
Is the loan with the lowest monthly payment the cheapest?
Not always. A longer term lowers the payment but adds more months of interest, so the total cost is often higher.
What does the APR in this comparison mean?
It is the yearly rate at which the payments repay only the money you receive after fees, quoted as the monthly rate times 12. Which fees count and how APR is stated vary by country.
What does this comparison leave out?
It assumes fixed rates, fees paid at the start and no early repayment. Variable rates, insurance and early repayment charges change the picture, so read each offer's terms and ask the lender or a financial adviser if unsure.