Loan Comparison Calculator
Compare personal loans, auto loans, or mortgages side-by-side to find the lowest total cost.
| Loan Name | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| Loan A — Bank | $489.15 | $4,349.22 | $29,349.22 |
| Loan B — Credit Union | $482.16 | $3,929.51 | $28,929.51 |
| Loan C — Longer Term | $371.24 | $6,183.82 | $31,183.82 |
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When comparing loan offers, the monthly payment is only part of the story. Two loans with the same amount can have wildly different total costs depending on the rate and term. This calculator shows monthly payment, total interest, and total amount paid for up to 5 loans side by side — so you can see which offer actually saves you the most money.
Example
Same $25,000 loan — three offers: Bank (6.5%, 5 years): $490/mo, $4,424 interest, $29,424 total Credit Union (5.9%, 5 years): $483/mo, $3,966 interest, $28,966 total Longer term (6.5%, 7 years): $375/mo, $6,435 interest, $31,435 total Credit Union saves $458 vs Bank, $2,469 vs Longer Term
Monthly Payment Formula
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1] P = principal r = monthly rate (annual rate ÷ 12) n = total months (years × 12) Total interest = (M × n) − P
Rate vs Term Trade-off
A lower interest rate saves money. But a longer term also lowers the monthly payment while increasing total interest paid. The optimal choice depends on your cash flow: - If you need the lowest payment: longer term - If you want to minimize total cost: shortest term with lowest rate For the same loan amount and rate, extending a 5-year loan to 7 years saves ~$115/month but costs ~$2,000 more in interest.
Frequently Asked Questions
What's more important — rate or term?
Rate has a bigger impact on total cost. A 1% lower rate on a $25,000 5-year loan saves about $650 in interest. Cutting from 7 to 5 years at the same rate saves $2,000 but costs $115/month more.
Should I always pick the loan with lowest total interest?
Usually yes, if you can afford the payment. The exception: if the monthly savings from a longer term can be reliably invested at a higher return than the interest rate.
Does this include origination fees?
No — this calculates only interest cost. Add any origination fees to the effective 'principal' to compare true total cost. A 0% fee loan is almost always better than one with a 2% origination fee, even with a lower rate.
Can I compare different loan amounts?
Yes — each loan can have a different principal. This is useful for comparing refinancing scenarios where you roll in fees or change the loan balance.