Loan Comparison Calculator

Put two loan offers side by side — rate, term and fees — and see which is truly cheaper.

Quick answer

A loan comparison calculator puts two offers side by side by monthly payment, total interest, fees and total cost. $200,000 at 6% for 30 years costs $1,199.10 a month, while 5.5% for 15 years costs $1,634.17 but saves about $137,000 in interest. Always include up-front fees.

Loan A
$
%
yrs
$
Loan B
$
%
yrs
$
Loan A monthly
$1,264
Loan B monthly
$1,199
Loan A total cost
$458,089
Loan B total cost
$437,676
Difference
$20,413
Loan A costs $1,264.14/month and $258,089 in interest and fees; Loan B costs $1,199.10/month and $237,676. Loan B is cheaper overall by $20,413. It also has the lower or equal monthly payment.

Key takeaways

  • Compare total cost, not just the monthly payment.
  • Points and fees matter more if you refinance early.
  • Shorter terms usually carry lower rates.
Total cost of borrowing — All payments over the loan's life plus up-front fees, minus the amount borrowed.

How the loan comparison calculator works

We calculate each loan's payment and total interest with the standard amortization formula, then add up-front fees (origination, points) to get the true total cost of borrowing.

Formula

Payment = P × r(1+r)^n ÷ ((1+r)^n − 1) Total cost = payment × n + fees

Standard formula. Further reading: CFPB – Buying a house · Investopedia – Amortization

Worked example

$200,000 at 6% for 30 years costs $1,199.10/month; at 5.5% for 15 years it costs $1,634.17/month but saves about $137,000 in interest.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

Are points worth paying?

Paying points lowers your rate. They pay off if you keep the loan longer than the break-even time (fees ÷ monthly savings).

Should I compare APR or rate?

APR includes fees and is the better quick comparison; this calculator shows both payment and total cost.

Why does a shorter term cost less?

You pay interest for fewer years and shorter terms usually come with lower rates.

Does this assume I keep the loan to the end?

Yes. If you plan to refinance or sell early, up-front fees matter more.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated