⚖️ Loan Comparison Calculator
Compare two loan offers side by side to see which one has the lower monthly payment and lower total interest cost.
What This Calculator Does
When shopping for a loan, the lowest monthly payment isn’t always the cheapest option overall. This calculator lets you enter two loan offers — amount, interest rate, and term for each — and compares their monthly payments and total interest cost side by side.
The Method
Each loan’s monthly payment is calculated with the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. Total interest is the total of all payments minus the original loan amount.
Why terms matter: A loan with a lower monthly payment but a longer term can end up costing significantly more in total interest than a loan with a higher payment but a shorter term. Comparing both the monthly payment and total interest together gives a fuller picture than looking at either number alone.
This tool is for general educational and planning purposes only and is not financial advice.