Introduction
The Loan Comparison Calculator lets you put up to five loan offers side by side. Type in the loan amount, the APR, and the term for each one. The calculator shows you the monthly payment, the total interest paid, and the total amount paid for every loan.
Pick your goal at the top. You can aim for the lowest monthly payment, the least interest, or the smallest total cost. The tool marks the best loan for that goal so you can see the winner right away.
A bar chart compares the loans in one view. A step-by-step section shows the math behind each answer, so you know where the numbers come from. Use it for car loans, personal loans, student loans, or any fixed-rate loan with equal monthly payments.
How to use our Loan Comparison Calculator
Enter the amount, rate, and term for each loan offer you are weighing. The calculator shows the monthly payment, total interest paid, total amount paid, and number of payments for each loan, and marks the best one for your goal.
My Goal: Pick what matters most to you: the lowest monthly payment, the least total interest, or the smallest total amount paid. The winning loan gets a green "Best for this goal" badge.
Add Loan: Click this to add another loan column. You can compare up to 5 loans at once. Use "Remove" to drop a column you no longer need.
Loan Label: Type a name for each offer, like "Bank A" or "Credit Union." Use up to 30 characters so you can tell the loans apart.
Loan Amount ($): Enter how much money you plan to borrow, before interest. Use a number from $1 up to $10,000,000.
APR (%): Enter the yearly interest rate the lender quoted you, such as 7.5. Use a number from 0 to 100.
Loan Term: Enter how long you will pay the loan back, then choose Years or Months in the drop-down. Use whole numbers only, up to 30 years or 360 months.
Calculate and Clear: Each column has its own Calculate button to update that loan and a Clear button to reset it. The big Calculate button runs every loan at once, and Reset All starts over.
Visual Comparison: Choose All Metrics, Monthly Payment, Total Interest, or Total Paid to change what the bar chart shows.
Step-by-Step Solution: Pick a loan from the drop-down to see the full math, from the monthly rate to the final payment.
Comparing Loans: What You Need to Know
When you borrow money, two offers can look almost the same but cost very different amounts. Comparing loans means looking at the same three numbers for each offer (the loan amount, the APR, and the term), then seeing what each one really costs you each month and over the whole loan.
The Three Inputs
- Loan amount (principal): the money you borrow. This does not include interest.
- APR (Annual Percentage Rate): the yearly cost of borrowing, shown as a percent. APR usually includes the interest rate plus some lender fees, so it is a better way to compare offers than the plain interest rate.
- Term: how long you have to pay the loan back, in years or months.
The Three Results
- Monthly payment: the same fixed amount you pay every month until the loan is gone.
- Total interest paid: the extra money you hand the lender on top of what you borrowed.
- Total amount paid: your loan amount plus all the interest.
How Rate and Term Change the Cost
A lower APR is always better. Term is trickier. A longer term gives you a smaller monthly payment, but you pay interest for more months, so the loan costs more in the end. A shorter term costs less overall, but each payment is bigger. That is why one loan can win on monthly payment while another wins on total interest.
How the Math Works
Fixed-rate loans use one standard formula, called amortization:
M = P × r × (1 + r)n ÷ [(1 + r)n − 1]
Here M is the monthly payment, P is the loan amount, r is the monthly rate (APR ÷ 1200), and n is the number of monthly payments. Every payment covers some interest and some principal. Early on, most of your money goes to interest. Later, most goes to paying down the balance.
Picking the Right Loan
First decide what matters most to you. If money is tight each month, aim for the lowest payment you can afford. If you want to save the most money, aim for the lowest total interest. Also check things this math cannot show: prepayment penalties, late fees, origination fees not included in the APR, and whether the rate is fixed or can change later. Always compare offers using the same loan amount so the numbers are fair.