🏦 Loan Comparison Calculator
Compare up to 3 loan offers side by side
Loan 1
Loan 2
Loan 3
How to Use This Tool
Follow these steps to compare up to three loan offers:
- Enter the loan amount, annual interest rate, term in years, repayment frequency, and upfront fees for each loan you want to compare. You can fill in 1, 2, or all 3 loan sections.
- Click the "Compare Loans" button to generate a side-by-side breakdown of all entered loans.
- Review the sorted results to see which loan has the lowest total cost (including fees). The best option will be marked with a 🏆 icon.
- Use the "Copy Results" button to save the comparison to your clipboard, or click "Reset All" to clear all inputs and start over.
Formula and Logic
This calculator uses the standard amortizing loan payment formula to calculate periodic payments and total costs:
- Periodic Payment (PMT) = P * (r(1+r)^n) / ((1+r)^n - 1), where:
- P = Principal loan amount
- r = Periodic interest rate (annual rate / 100 / payments per year)
- n = Total number of payments (loan term in years * payments per year)
- Total Payments = Periodic Payment * Total Number of Payments
- Total Interest = Total Payments - Principal Loan Amount
- Total Loan Cost = Total Payments + Upfront Fees
Loans are sorted by total cost (lowest to highest) to help you quickly identify the most affordable option.
Practical Notes
Keep these finance-specific tips in mind when using this tool:
- Interest rates are assumed to be fixed for the full loan term. Adjustable-rate loans will have variable payments not captured here.
- Upfront fees include origination fees, application fees, and closing costs that are added to your total borrowing cost.
- More frequent repayments (biweekly or weekly) reduce total interest paid over time by lowering the principal faster, even if the annual rate is the same.
- Always compare the APR (Annual Percentage Rate) rather than just the interest rate, as APR includes upfront fees. This tool calculates total cost including fees to mimic APR comparison.
- Loan terms longer than 10 years may have higher total interest even with lower monthly payments. Balance monthly affordability with total cost.
Why This Tool Is Useful
This calculator solves a common pain point for anyone evaluating loan offers:
- Loan applicants can compare offers from multiple lenders side by side without manual math.
- Financial planners can model different loan scenarios for clients in minutes.
- Budget managers can see exactly how much a loan will cost in total, not just the monthly payment, to avoid overextending.
- Transparent breakdowns help you negotiate better terms by identifying hidden costs like high upfront fees.
Frequently Asked Questions
What if I only want to compare 2 loans?
You can leave the fields for Loan 3 blank. The calculator will only process loans with valid, complete inputs. Blank loan sections will be ignored in the comparison.
Does this calculator account for compound interest?
Yes, the formula uses compound interest based on your selected repayment frequency. Interest is compounded each period (monthly, biweekly, or weekly) as specified.
Can I use this for mortgages or auto loans?
Yes, this tool works for any fixed-rate installment loan including mortgages, auto loans, personal loans, and student loans. Adjust the term and fees to match your loan type.
Additional Guidance
To get the most accurate results:
- Use the exact interest rate from your loan estimate, not a teaser rate that may expire.
- Include all upfront fees listed on your loan disclosure, not just the origination fee.
- Check if your loan has prepayment penalties, which are not included in this calculation but may affect your total cost if you pay off the loan early.
- Compare loans with the same term length first, then evaluate shorter or longer terms based on your budget flexibility.