Compare two loan offers side by side to see the exact difference in monthly payment and total interest paid over the life of the loan.
A lower rate doesn’t always mean a better deal once term length and fees are factored in. This tool compares two straightforward loan offers so you can see the real dollar difference.
Loan A
Amount: Rate (%): Term (years):
Loan B
Amount: Rate (%): Term (years):
What Gets Compared
Each loan is run through the standard fixed-rate amortization formula to find its monthly payment, total amount paid, and total interest. The comparison then shows the exact difference in payment and total interest between the two offers.
How to Use This Calculator
- Enter the amount, annual interest rate, and term (in years) for Loan A.
- Enter the same details for Loan B.
- Click Compare to see monthly payment and total interest for both, plus the difference.
This calculator doesn’t include fees, points, or closing costs; for a full cost comparison, add those separately to each loan’s total.
Did You Know?
- A shorter loan term almost always means a higher monthly payment but significantly less total interest, since there’s less time for interest to accrue.
- The Annual Percentage Rate (APR) on a loan can differ from its stated interest rate once fees are included; comparing APRs is often more accurate than comparing interest rates alone.
Frequently Asked Questions
Should I always pick the lower monthly payment?
Not necessarily. A lower payment often comes from a longer term, which usually means paying more total interest over the life of the loan. This calculator shows both numbers so you can weigh the trade-off.
Does this include fees or closing costs?
No, this compares principal, rate, and term only. Add any fees or closing costs to each loan’s total separately for a complete comparison.