Loan Comparison
Compare multiple loan offers side by side
Last updated: January 2025
About This Tool
Comparing loan offers can save you thousands of dollars over the life of a loan. This calculator helps you evaluate multiple loan options side-by-side to find the best deal based on total cost, not just monthly payment.
What is Loan Comparison Calculator?
A loan comparison calculator evaluates multiple loan offers by calculating monthly payments, total interest paid, and overall cost for each option. It helps you see beyond the quoted interest rate to understand the true cost of borrowing and identify the most economical choice.
How It Works
Enter details for each loan offer including principal amount, interest rate, and term length. The calculator computes the monthly payment and total interest for each loan, then ranks them by total cost. This reveals which loan truly costs less over time, which may not be the one with the lowest rate.
Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1] where P=principal, r=monthly rate, n=months
Enter Loan Details
| Lender | Loan Amount | Interest Rate | Term (Years) | |
|---|---|---|---|---|
Bank B
Bank A
Costs $29,265.75 more in interest
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When to Use This Calculator
- 1Shopping for a mortgage and comparing lender offers
- 2Evaluating auto loan options from dealers and banks
- 3Comparing personal loan offers from multiple lenders
- 4Deciding between different loan terms (15-year vs 30-year)
- 5Refinancing and comparing new terms to existing loan
Pro Tips
- •Compare total cost over the life of the loan, not just monthly payment
- •Get quotes from at least 3-5 lenders before deciding
- •All rate quotes within 14-45 days count as one credit inquiry
- •Consider the APR which includes fees, not just the interest rate
- •A lower rate with higher fees may cost more than a slightly higher rate
Common Mistakes to Avoid
- •Choosing based only on the lowest monthly payment (longer terms cost more)
- •Ignoring origination fees and closing costs in the comparison
- •Not negotiating - many lenders will match or beat competitor offers
- •Comparing loans with different terms without adjusting for time value
- •Forgetting to factor in prepayment penalties for early payoff