Loan A Payment
$396.02
Loan Comparison Calculator
Compare two loan offers side-by-side.
Total Cost Difference (A − B)
$562.08
Loan B Payment
$386.66
Loan A Total Interest
$3,761.44
Loan B Total Interest
$3,199.36
Loan B costs less overall.
How to use the Loan Comparison Calculator
The Loan Comparison Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Loan A — Amount — a dollar amount.
- Loan A — Rate — a percentage (enter 6 for 6%).
- Loan A — Term (yrs) — a number.
- Loan B — Amount — a dollar amount.
- Loan B — Rate — a percentage (enter 6 for 6%).
- Loan B — Term (yrs) — a number.
The formula
It fully amortizes each loan and compares their total cost — every scheduled payment over the whole term — so a lower monthly payment can't hide a higher lifetime bill:
Difference = Total paid (A) − Total paid (B)
Total paid = monthly payment × number of months- Each payment
- from M = P·r(1 + r)ⁿ / ((1 + r)ⁿ − 1)
- Total paid
- the payment times the number of months in that loan's term
The comparison is on total dollars paid, interest included. Two loans can have similar payments but very different total costs when their terms differ — a longer term lowers the payment while raising lifetime interest.
Worked example
Using the example values — Loan A — Amount $20,000.00, Loan A — Rate 7%, Loan A — Term (yrs) 5, Loan B — Amount $20,000.00, Loan B — Rate 6%, Loan B — Term (yrs) 5 — the Loan Comparison Calculator returns a Total Cost Difference (A − B) of $562.08. It also reports Loan A Payment ($396.02), Loan B Payment ($386.66), Loan A Total Interest ($3,761.44).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Amortization
- Repaying a loan in level installments split between interest and principal.
- Total cost
- Principal plus all interest over the full term — the true basis for comparison.
- Term
- The number of years over which the loan is repaid.
Frequently asked questions
Should I just pick the lower monthly payment?
Not necessarily. A lower payment often comes from a longer term, which can cost more in total interest. Compare the total-cost figure, not just the monthly one.
Does it account for fees or APR?
No — it compares rate, amount and term. To fold fees and points into a single rate, use the APR calculator.
The two loan amounts differ — is the comparison still fair?
It compares total dollars paid, so different amounts are handled; but a like-for-like rate comparison is clearest when the amounts match.