Compare two loan scenarios side by side. This calculator estimates the payment, total repayment, and total interest for each option so you can see which loan may cost less overall and which one offers lower monthly payments.
What This Calculator Estimates
This calculator estimates the payment and total borrowing cost for two separate loan options. It is useful for comparing refinance offers, personal loans, auto loans, or other amortized borrowing choices when you want to balance monthly affordability against total cost.
Formula / Method Used
Each loan uses the standard amortized loan payment formula:
Payment = P x [r(1+r)^n] / [(1+r)^n - 1]
- P = loan amount plus optional fees
- r = monthly interest rate
- n = number of monthly payments
Total repayment is monthly payment multiplied by the term. Total interest is total repayment minus the financed amount.
Worked Example
If Loan A is $20,000 at 7.5% for 60 months with $250 in fees, and Loan B is $20,000 at 6.9% for 48 months with $500 in fees, the calculator estimates each payment and the full repayment over the term. You can then compare whether the lower rate or shorter term actually reduces total cost.
What the Result Means
The monthly payment figures help with cash-flow planning. The total repayment and total interest figures show the full borrowing cost. A loan with the lower payment is not always the cheaper loan overall, so the total cost difference matters most when comparing long-term affordability.
Common Mistakes
- Looking only at APR and ignoring fees.
- Choosing the lowest payment without checking the longer-term cost.
- Comparing loans with different terms but treating them as equivalent.
- Assuming the lender will finance fees the same way this estimate does.
Limitations / Disclaimer
This calculator provides estimates only and is not a loan offer or financial advice. It assumes fixed-rate amortized payments and does not include taxes, late fees, changing rates, or lender-specific disclosures. Results are estimates.
Last updated: May 2026
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Frequently Asked Questions
What does this loan comparison calculator show?
It estimates the monthly payment, total repayment, and total interest for two loans so you can compare cost and cash flow.
Does a lower monthly payment mean a better loan?
Not always. A lower payment can come from a longer term and may still lead to a higher total repayment.
How are fees handled here?
Optional fees are added to the financed amount for each loan so the estimate reflects their impact on payment and total cost.
Are these loan results final offers?
No. Results are estimates only. Actual lender offers can vary based on underwriting, fees, rate type, and disclosures.