Loan Comparison Calculator: Compare Two Loans Side by Side

Compare editable loan offers by payment, fees, total cost, payoff date, extra payments, and amortization. Results are estimates and run entirely in your browser.

General

Starter values are included so the results update immediately. Replace them with your lender quotes, and keep APR as an annual percentage such as 6.5.

Advertisement

Last updatedJuly 5, 2026
AssumptionsFixed rate, monthly amortization
No lender affiliationNo quote ranking or referral fees
PrivateRuns in your browser
Estimate onlyNot financial advice

Calculation methodology

Payment = P x r x (1 + r)^n / ((1 + r)^n - 1)
  • P is the financed balance. Rolled fees are added to P; upfront fees are counted separately in total cost.
  • r is the annual interest rate or APR divided by 12 and expressed as a decimal.
  • n is the term in months. Payments are amortized monthly.
  • Extra payments reduce principal after regular principal is applied. The last payment is adjusted to avoid overpayment.
  • Edge cases: at 0% APR, payment is principal divided by months. Very large extra payments can close a loan early.

How to compare loan offers

Comparing loans is more than checking the APR. Two offers with similar interest rates can behave very differently once you account for term length, fees, whether costs are rolled into the balance, and any extra principal payments you plan to make.

What to look at first

  • Best choice based on total cost: The result with the lowest loan amount plus interest plus fees.
  • Monthly payment: Lower is easier on cash flow, but it can cost more over the full term.
  • Total fees: Upfront or rolled costs can change the winner even when APR looks lower.
  • Payoff date: Extra payments and shorter terms reduce the number of months interest accrues.

How extra payments and fees change the math

Amortizing loans charge interest on the remaining balance. Every extra payment reduces principal earlier, which lowers future interest. Fees paid upfront raise cash needed at closing; fees rolled into the loan raise the starting balance and can create interest on the fee amount.

Practical comparison scenarios

Shorter term versus lower payment

A 250,000 loan at 6.2% for 30 years has a much lower payment than the same loan for 20 years, but the shorter term can cut total interest by tens of thousands.

Takeaway: compare total cost and monthly affordability together.

Lower APR with high fees

Offer A at 5.9% with 4,000 in lender fees may cost more than Offer B at 6.1% with 500 in fees if you repay or refinance early.

Takeaway: the lowest APR is not always the cheapest offer.

Rolling closing costs into a refinance

A 200,000 refinance with 3,000 rolled fees starts amortizing at 203,000, so the fee can generate interest for years.

Takeaway: rolled costs improve upfront cash flow but raise the financed balance.

Paying extra every month

Adding 100 per month to a 250,000, 30-year loan can shorten payoff and lower interest because the balance falls sooner.

Takeaway: steady extra principal payments can matter more than a tiny rate difference.

Loan comparison FAQ

Which loan is cheaper?

The cheaper loan is usually the one with the lowest total cost after monthly payments, interest, fees, and upfront costs are included.

Should I choose lower APR or shorter term?

A lower APR reduces the rate, but a shorter term can reduce lifetime interest even when the monthly payment is higher.

How do origination fees affect comparison?

Origination fees increase total cost. If rolled into the loan, they also increase the financed balance and interest over time.

Do extra payments go to principal?

This calculator assumes extra monthly, annual, and one-time payments go directly to principal.

What is the difference between APR and interest rate?

The interest rate is the rate used to amortize the balance. APR may include certain required costs. This calculator uses the entered annual rate for amortization and shows fees separately.

Can this compare personal, auto, student, or mortgage loans?

Yes. It works for most fixed-rate monthly amortizing loans, including personal, auto, student, refinance, and mortgage offers.

Explore more tools