Loan Comparison Calculator
Enter the details for two loan offers and compare them side by side. See which loan costs less in monthly payments, total interest, and overall cost.
Loan A
Loan B
Loan A
Loan B
Loan B saves $116,717 in total interest over the life of the loan.
Monthly payment vs total cost: what to compare
A lower monthly payment is not always the better deal. A longer loan term typically reduces your monthly payment but dramatically increases the total interest you pay. For example, a $200,000 mortgage at 6% costs $1,199/month over 30 years ($231,676 in interest) but $1,799/month over 15 years ($123,782 in interest) — the 15-year loan saves over $100,000 despite the higher monthly cost.
When comparing loans, look at the total cost (principal + interest) over the full term, not just the monthly payment. The interest rate and the term length both determine what you ultimately pay.
Frequently asked questions
What if the loan amounts are different?
You can compare loans with different principal amounts — this is useful if you're considering borrowing different amounts under different terms. The calculator shows the absolute cost of each loan, so a lower total on a smaller loan is expected.
Does this account for fees and closing costs?
No — this calculator uses the stated interest rate only. Mortgages and other loans often include origination fees, points, and closing costs that add to the real cost. The APR (Annual Percentage Rate) includes many of these fees and is a better basis for comparison than the nominal interest rate.
What is a good interest rate for a mortgage?
Mortgage rates fluctuate with central bank policy and economic conditions. In the mid-2020s, 30-year fixed rates in the US have ranged from 5–8%. Your credit score, down payment, loan type, and lender all affect the rate you qualify for. Shopping multiple lenders and getting competing offers is one of the best ways to reduce your rate.
