Compare two loans side by side to find the better deal. Analyze monthly payments, total interest paid, and total cost including origination fees — all in one place. Make an informed decision with a clear recommendation.
Scenario: You're borrowing $25,000 for a car. Bank A offers 5.5% APR for 5 years with a 1% origination fee. Credit Union B offers 6.0% APR for 4 years with no origination fee.
| Metric | Loan A (5.5%, 5yr, 1% fee) | Loan B (6.0%, 4yr, 0% fee) |
| Monthly Payment | $477.24 | $587.13 |
| Total Interest | $3,634.47 | $3,182.29 |
| Total Cost | $28,884.47 | $28,182.29 |
| Observation | Lower monthly payment | Lower total cost ($702 less) |
Key takeaway: Loan B costs less overall despite the higher rate because of the shorter term and no origination fee. But Loan A has lower monthly payments if that fits your budget better.
Scenario: Two lenders offer $30,000 with different combinations. Loan A: 4.0% for 6 years, 0% fee. Loan B: 3.5% for 7 years, 0.5% fee.
| Metric | Loan A (4.0%, 6yr) | Loan B (3.5%, 7yr, 0.5% fee) |
| Monthly Payment | $469.69 | $392.22 |
| Total Interest | $3,817.71 | $2,946.77 |
| Total Cost | $33,817.71 | $33,096.77 |
Key takeaway: Loan B saves $720.94 despite the longer term, thanks to the lower rate. Always compare total cost, not just monthly payments.
Scenario: Loan A is $20,000 at 7% for 3 years, 2% fee. Loan B is $25,000 at 6% for 4 years, 1% fee. Which is the better deal considering the different amounts?
| Metric | Loan A ($20k, 7%, 3yr, 2% fee) | Loan B ($25k, 6%, 4yr, 1% fee) |
| Monthly Payment | $617.54 | $587.13 |
| Total Interest | $2,231.35 | $3,182.29 |
| Total Cost | $22,631.35 | $28,432.29 |
Key takeaway: Loan A costs less overall because you're borrowing less and paying it off faster. But Loan B offers lower monthly payments and lets you borrow more — choose based on your actual needs.
Scenario: You need $10,000. Loan A charges 8% for 1 year. Loan B charges 6% for 30 years.
| Metric | Loan A ($10k, 8%, 1yr) | Loan B ($10k, 6%, 30yr) |
| Monthly Payment | $869.88 | $59.96 |
| Total Interest | $438.62 | $11,585.36 |
| Total Cost | $10,438.62 | $21,585.36 |
Key takeaway: Loan A costs far less overall, but the monthly payment is 14x higher. Loan B's low monthly payment comes at a staggering interest cost. This stark example shows why longer terms should be used cautiously.
Total interest is the sum of all interest payments over the life of the loan. This is the cost of borrowing.
The true cost of the loan, including both the interest paid and any one-time origination fees charged by the lender.
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Comparing loan offers is one of the most important steps in the borrowing process. Lenders often provide different rates, terms, and fee structures — and without a side-by-side comparison, it's easy to choose a loan that seems cheaper but actually costs more in the long run.
You should compare loans when:
The golden rule: compare total cost, not monthly payments. A lower monthly payment often means a longer term, which means more total interest paid over the life of the loan.
Interest Rate is the percentage the lender charges on the principal — the cost of borrowing the money. APR (Annual Percentage Rate) includes the interest rate plus other costs like origination fees, discount points, and certain closing costs. APR is always equal to or higher than the interest rate.
This calculator lets you enter the interest rate and origination fee separately, which closely approximates the APR approach. When comparing loans, always look at APR when available, but our total cost calculation serves a similar purpose.
Rule of thumb: For the same interest rate, the loan with lower fees is better. For the same fees, the loan with the lower interest rate is better. When both differ, our side-by-side comparison gives you the answer.
Your loan terms aren't set in stone — there are actionable steps you can take to improve the offers you receive:
⚠️ Disclaimer: This Loan Comparison Calculator is designed for estimation and educational purposes only. While we strive for accuracy, actual loan terms, payments, interest rates, and costs may vary based on lender policies, your creditworthiness, and specific loan products. Origination fees may be calculated differently by different lenders. For important financial decisions, always consult with qualified financial professionals and review the official loan documents from your lender.