Loans

Loan Comparison Calculator

Compare two fixed-rate loan offers by monthly payment, interest, upfront fees, and total borrowing cost. Adjust the example inputs to explore how different assumptions affect the estimate.

Your scenario

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Start with the example values or enter your own assumptions.

Based on your inputs

Your estimate

Offer A monthly payment$495.03
Offer A total interest$4,701.82
Offer A upfront fees$500.00
Offer A total borrowing cost$5,201.82
Offer B monthly payment$500.95
Offer B total interest$5,056.96
Offer B upfront fees$0.00
Offer B total borrowing cost$5,056.96
Lower estimated borrowing costOffer B

Educational estimate only. Actual terms, taxes, fees, and returns may differ.

How to use this calculator

Enter one loan amount and the annual interest rate, term, and upfront fees for each offer. Compare monthly payments and total interest plus the fees you entered.

How the calculation works

Each offer uses the fixed-payment formula with monthly payments. Total borrowing cost = scheduled interest over the full term + upfront fees. Fees are treated as paid separately and are not added to the amount financed.

Worked example

For a $25,000, five-year loan at 7%, the estimated payment is about $495.03 per month and scheduled interest is about $4,701.82 when monthly cash amounts are rounded to cents. Adding $500 in upfront fees makes the modeled borrowing cost about $5,201.82.

Assumptions and limitations

Enter comparable offers for the same amount and repayment assumptions. The tool excludes fees not entered, taxes, insurance, late charges, variable-rate changes, and the time value of upfront cash. It is a simplified comparison, not a lender disclosure or APR calculation.

Frequently asked questions

Does the calculator include fees in the monthly payment?

No. Fees are added to estimated borrowing cost and are treated as paid upfront.

Should I compare offers using only the lowest payment?

No. A longer term can lower a payment while increasing interest over the loan. Review the terms and lender disclosures as well.

Sources and further reading

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Educational tool only. It does not provide personalized financial, tax, or legal advice.