Compare two loan offers on monthly payment, total interest, fees and true cost — including the effective APR once fees are counted.
| Offer A | Offer B | |
|---|---|---|
| Loan amount | ||
| Interest rate (% per year) | ||
| Term (years) | ||
| Up-front fees (amount) | ||
| Fees / points (% of loan) |
| Result | Offer A | Offer B | Difference (B − A) |
|---|
🔒 This tool runs entirely in your browser. Nothing you enter or upload is sent to our servers.
How to use the Loan Comparison Calculator
- Enter the amount, interest rate and term for offer A and offer B.
- Add any up-front fees for each — origination fees, points, arrangement fees — as an amount or a percentage.
- The cheaper offer on total cost is highlighted. Also compare the monthly payment and the fee-adjusted (effective) APR.
About this tool
A lower rate isn’t always the cheaper loan. Fees, points and a different term all change what you actually pay. This calculator computes the standard amortized payment for each offer, adds up every payment to find total interest, then adds the fees to get the true cost.
The effective APR answers “what rate would I be paying if the fees were built into the interest?”. It is found by solving for the rate at which the present value of all payments equals the amount you actually receive (the loan minus fees). A loan with a low headline rate but heavy fees can have a higher effective APR than a plain higher-rate loan — especially over short terms, where there is less time to spread the fees.
Frequently asked questions
Which number should I use to decide?
Total cost if you’ll keep the loan for its full term. If you might refinance or sell within a few years, favour the offer with lower fees, since you won’t be around long enough for the lower rate to pay them back.
What are points?
On a mortgage, one point is a fee of 1% of the loan amount paid up front to lower the interest rate. Enter points as a percentage fee; the calculator shows whether the rate reduction is worth it over your term.
Can I compare loans with different terms?
Yes. Note that a longer term lowers the payment but usually raises total interest — the table shows both so you can weigh cash flow against cost.
Does this work for car loans and personal loans?
Yes, for any amortized loan with fixed monthly payments. It does not model variable rates or interest-only periods.