Finance
Loan Comparison Calculator
Compare the same loan amount across two or three offers. See the lowest total borrowing cost alongside the lowest monthly payment.
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Based on the values you enter
Fixed nominal rates and monthly payments; fees paid separately upfront. No statutory APR calculation.
Useful next checks
- Compare a few scenarios before making a decision.
- Check rates, fees, tax, and timing outside the estimate.
- Use the explanation below to understand the formula.
# Loan Comparison Calculator
Compare two or three fixed-rate loan offers for the same amount borrowed. This calculator shows estimated monthly payments, total interest and separate upfront fees, so you can compare affordability with the total cost of borrowing.
What this calculator does
Enter one loan amount, then the annual nominal interest rate, term in whole months and upfront fee for each offer. You can give offers a short nickname. Choose Three offers to include an additional quote; hidden third-offer values are ignored when comparing two.
The result identifies the lowest estimated borrowing cost and the lowest monthly payment separately. The table shows each offer's rate, term, payment, fee, total interest, borrowing cost, total cash paid and extra cost relative to the lowest-cost offer. Equal displayed costs are shown as a tie.
How it works
For principal P, monthly rate r and number of monthly payments n, the estimated payment is:
M = P × r ÷ [1 − (1 + r)^(−n)]
The monthly rate is the nominal annual percentage divided by 100 and then by 12. Payments occur at the end of each month. At a zero interest rate, M = P ÷ n.
Total interest is M × n − P. If the separate upfront fee is F, total borrowing cost is interest + F, while total cash paid is M × n + F. The principal is common to all offers, so it does not distort the cost comparison.
Fees are paid separately at the start: they do not earn loan interest or change the payment. This calculator does not model fees financed into the balance or withheld from the amount you receive. Do not enter a fee-inclusive APR as if it were a nominal interest rate and then add the same fees again.
Example calculation
Suppose you borrow 10,000 at 6% annual nominal interest for 36 months, with a 200 upfront fee. The monthly rate is 0.06 ÷ 12 = 0.005. The formula gives a monthly payment of approximately 304.22.
Using the unrounded payment, total repayments are 10,951.90 and interest is 951.90. Add the separately paid fee: borrowing cost is 1,151.90 and total cash paid is 11,151.90. An otherwise identical offer with a 300 fee costs 100 more without changing the monthly payment.
At 0% interest over the same term, the monthly payment is approximately 277.78, interest is zero, and a 200 upfront fee means total cash paid of 10,200.00. These examples work in any one currency; changing the region changes formatting, not exchange rates.
How to use the result
Check whether the payment fits your own budget, then compare interest and fees across the full term. A longer term may lower each payment but raise the total interest. The lowest borrowing-cost label describes only these entered assumptions; it does not assess lender eligibility, product suitability or credit risk.
For a single quote, use the Loan Repayment Calculator. For revolving balances, use Credit Card Repayment, or compare debt strategies with the Debt Payoff Planner.
Assumptions and limitations
- Fixed nominal interest rate, monthly end-of-period payments and complete repayment over 1–600 whole months.
- Upfront fees paid separately; no ongoing fees, balloon payments, early repayment charges, variable rates, taxes or insurance.
- One common amount and currency, without currency conversion or different cash advances.
- Calculations retain full precision; displayed values are rounded. Multiplying a rounded payment by the term can differ from the shown total. Actual lenders may adjust the final payment.
- Estimates only, not statutory APR calculations, personalised financial advice or approval decisions.
Sources and method check
Method and examples checked on 13 October 2026 against the fixed-payment convention described in Microsoft's PMT documentation. Its period-rate convention matches this monthly model. The Consumer Financial Protection Bureau explains why interest rates and APR differ; this calculator keeps interest and separately paid fees visible rather than claiming to calculate APR. This is a source and arithmetic check, not a professional review of your loan.
Frequently asked questions
Does this calculator compare APR?
No. Enter the nominal annual interest rate and separate upfront fees. The calculator compares estimated cash costs; it does not calculate statutory APR.
Are upfront fees added to the loan balance?
No. Fees are paid separately at the start. They increase total borrowing cost and total cash paid, but do not change monthly payments or interest.
Why can a lower monthly payment cost more overall?
A longer repayment term can reduce each payment while increasing total interest. Compare both the monthly payment and total borrowing cost for the same principal.
What does a tie mean?
Offers tie when their total borrowing costs round to the same displayed currency amount. Unrounded totals and actual lender rounding may still differ.