Loan Comparison Calculator
Compare two loans by monthly payment, total interest, and total cost across different rates and terms.
Compare loan offers using the same starting amount
Both offers use the same principal. Enter the rate, term, upfront fees, and any final balloon separately. The lower-cost loan is selected by total amount paid rather than monthly payment alone.
Why a lower payment can cost more
A longer term or balloon can reduce the monthly payment while increasing total cost. Insurance, variable rates, and contractual charges that are not entered can change the comparison.
Frequently Asked Questions
Comparing Loan Offers
When comparing loans, look at both the monthly payment and the total cost. A longer term lowers your monthly payment but increases total interest paid. A lower interest rate always reduces both.
Which input should be the same for both offers?
Use the same loan amount so the comparison measures the offer terms rather than different borrowing needs.
Why is the interest rate alone not enough?
Term, fees, and a balloon payment can outweigh a small rate difference. The calculator ranks offers by total cost.
How do different terms affect the comparison?
A longer term often lowers the payment but raises total interest. The balance chart makes that tradeoff visible.
How is a balloon payment handled?
The balloon remains due at the end and reduces the scheduled monthly payment. It is still included in total cost.
Can the offer with the higher payment be cheaper?
Yes. Paying the balance faster can reduce interest enough to make the higher-payment offer cheaper overall.