Finance calculators

Loan Comparison Calculator

Updated Aug 16, 2026 By Jehan Wadia
Rate Formulas
My Goal
3 of 5 loan columns in use

Your Loan Details

Comparison Results

Visual Comparison
Step-by-Step Solution

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. If you only need the numbers for a single offer, the standard Loan Calculator or Loan Payment Calculator will do the job.

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. If you are still deciding how much to finance, a Down Payment Calculator can help you set that figure.

APR (%): Enter the yearly interest rate the lender quoted you, such as 7.5. Use a number from 0 to 100. If a lender quoted a rate plus fees instead of an APR, run it through the APR Calculator first.

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. To see how each payment splits between interest and principal month by month, open the Amortization Calculator.

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 — and 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. The Loan Interest Calculator breaks this figure down on its own.
  • 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. The same formula powers the Mortgage Calculator, the EMI Calculator, and the Installment Loan Calculator, so the results here line up with those tools.

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 — the DTI Calculator shows how much room your income leaves for a new payment. 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.

After You Choose a Loan

Once the loan is in place, you can still cut its cost. Try the Extra Payment Calculator or the Loan Payoff Calculator to see how much faster the balance disappears when you add a little to each payment. If rates drop later, compare your current loan against a new one with the Refinance Calculator. And if you are juggling several balances at once, the Debt Consolidation Calculator and the Debt Payoff Calculator show whether rolling them into one loan actually saves you money.


Formulas used

Number of Monthly Payments
n = \text{term in years} \times 12 \quad \text{(or } n = \text{term in months)}
Monthly Interest Rate
r = \frac{\text{APR}}{12 \times 100} = \frac{\text{APR}}{1200}
Monthly Payment (fixed-rate amortization)
M = \frac{P \cdot r \cdot (1+r)^{n}}{(1+r)^{n} - 1}
Monthly Payment when APR = 0%
M = \frac{P}{n}
Total Amount Paid
\text{Total Paid} = M \times n
Total Interest Paid
\text{Total Interest} = \text{Total Paid} - P

Frequently asked questions

Can I compare loans that have different loan amounts?

Yes. Each column has its own loan amount box, so you can mix and match. But for a fair test, use the same amount in every column. If the amounts differ, one loan may look cheaper just because you are borrowing less.

Does the calculator include fees like origination or closing costs?

No. It only uses the loan amount, APR, and term you type in. If your APR already has lender fees baked in, those costs are covered. Any fee you pay out of pocket at closing is not counted here, so add it yourself when you compare offers.

Why is my lender's monthly payment a few cents different?

Small gaps come from rounding. Lenders may round each payment up or down, or use a slightly different day-count rule. A difference of a few cents per month is normal and does not change which loan is cheaper.

Can I use this to compare mortgage offers?

Yes, for the principal and interest part of the payment. Enter the loan amount after your down payment, the APR, and the term in years. Remember that a real mortgage bill also includes property tax, home insurance, and sometimes PMI or HOA dues.

Does it work for variable or adjustable-rate loans?

No. This tool is built for fixed-rate loans with equal monthly payments. If the rate can change later, the results only show what the loan costs while that starting rate lasts.

What does "Number of Payments" mean?

It is how many monthly payments you will make in total. A 5-year loan has 60 payments. A 3-year loan has 36. The calculator turns your term into months for you, so you can compare a loan set in years against one set in months.

Can I enter 0% APR for a promo deal?

Yes. Type 0 in the APR box. The calculator then splits the loan amount evenly across the months, and total interest shows as $0.00. The step-by-step section switches to the simple division math for that loan.

Why do two loans both show the "Best for this goal" badge?

They tied. When two offers match on the metric you picked, down to the cent, both get the badge. Switch your goal at the top to break the tie, or look at other things like fees and prepayment rules.

Should I always pick the loan with the lowest monthly payment?

Not always. A low payment usually means a longer term, and that means more interest over time. Pick the lowest payment only if your budget is tight. If you can afford more each month, check the total interest goal instead.

Can I compare more than 5 loans?

Five columns is the limit. If you have more offers, compare five, write down the winner, then use Remove or Clear to swap in the next batch and test the winner against them.

Does the calculator save my numbers?

No. Nothing is stored or sent anywhere. When you reload or close the page, the sample values come back. Write down or screenshot your results before you leave.

Can I use this for credit card debt?

Only if you plan to pay a fixed amount each month until the balance hits zero. Credit cards use minimum payments that shrink over time and let you add new charges, so the math here will not match your card statement.

Does it handle weekly or biweekly payments?

No. Every result is based on one payment per month. If a lender quotes a biweekly plan, compare the monthly numbers here first, then ask the lender how much the faster schedule saves.

What if I plan to pay extra each month?

This tool assumes you pay the exact same amount every month for the full term. Extra payments cut both the interest and the payoff time, so your real cost would be lower than the totals shown.

Why do my results show a dash instead of numbers?

One of your inputs is blank or out of range. A red message appears under the box that needs fixing. Check that the amount is above $0, the APR is between 0 and 100, and the term is a whole number within the limit.

Can I enter a term like 4.5 years?

No, terms must be whole numbers. Switch the drop-down to Months and enter 54 instead. That gives you the same 4.5-year loan with exact results.

Does the tool work in other currencies?

The math works for any currency, but labels show dollar signs. Just read every "$" as your own currency, since the formula does not change from one country to the next.

How does a bigger down payment change the comparison?

A bigger down payment lowers the loan amount you type in. That drops the monthly payment and the total interest for every offer. Test a few amounts to see how much cash up front is worth to you.

Does it work on a phone?

Yes. On small screens the loan columns stack one under the other instead of sitting side by side. The chart may scroll sideways so the bars stay readable.

Why does one loan win on monthly payment but lose on total cost?

Because term and rate pull in different directions. Stretching payments over more months shrinks each bill but adds months of interest. That is why the calculator shows all three numbers instead of just one.