loan comparison calculator guide
How to use this loan comparison calculator
Two loan offers can have similar monthly payments but very different total costs. This calculator helps compare the whole offer, not just the number a lender highlights.
Steps
- Enter loan amount, APR, term, and fees for offer A.
- Enter the same details for offer B.
- Compare payments and total cost.
- Look at fees and term length before choosing.
Calculation method
Each loan is calculated with a fixed-rate payment formula. Fees are added to total cost so the comparison includes more than interest alone.
Example scenario
A loan with a slightly higher APR but no fee may beat a lower-rate loan with a large fee, especially over a shorter term.
Tips for a better estimate
- Compare the same loan amount when possible.
- Include application, origination, and closing fees.
- Do not choose a longer term only to lower the payment unless the total cost still makes sense.