Loan Comparison Calculator

What is the Loan Comparison Calculator?

The Loan Comparison Calculator places two loan offers side by side. It calculates the monthly payment and total cost for each, so you can quickly see which loan is cheaper.

The calculator is free, works in your browser without registration, and shows the result as soon as you change the values. The calculations are done on your device, and the information you enter is not sent anywhere.

Formula and Calculation Principle

Monthly payment = L × r / (1 − (1 + r)⁻ⁿ). Total cost = monthly payment × months + fees − loan amount. The cheaper loan is the one with the lower total cost.

Practical Example

Loan A: $10,000, 6 percent interest for 5 years; Loan B: 5.2 percent interest for 6 years. The calculator shows which one is cheaper overall. With default values, the calculator gives the result: Loan A is cheaper by $242.78.

Who is the calculator suitable for?

For someone who has been offered two loans and wants to compare them numerically, not only by monthly payment but also by total price.

Tips and Considerations

• Compare loans with the same loan amount and fees.
• Do not extend the loan term just for a smaller monthly payment.
• Compare multiple lenders.