Loan Comparison Calculator
What this loan comparison calculator does: enter up to three loan offers for the same amount, and it lines them up on payment, interest, fees, and APR. It has three tabs:
1. Compare Loans: payment, total interest, total cost including fees, and the APR for each offer, plus the Truth in Lending figures a lender would disclose
2. Refinance Check: whether a new loan saves money after switching costs, and how many months it takes to recover them
3. Prepayment Saver: interest and time saved by extra monthly, yearly, or one-time payments
Free, no sign-up. Your numbers stay in your browser. Results are educational estimates, not loan offers or financial advice.
Compare up to 3 loans side-by-side — payment, total interest, the true APR, amortization & the Truth in Lending disclosure figures
Under the Truth in Lending Act (Regulation Z, 12 CFR §1026.18), lenders must disclose these same four figures so you can compare offers on identical footing. The APR folds prepaid fees into a single yearly rate, so offers with different fees can be compared on the same basis.
How to use the loan comparison calculator
1. On Compare Loans, pick the Currency, Loan Type, and how many Loans to compare (2 or 3).
2. Under Shared Loan Settings, enter the Loan Amount (Principal) and Repayment Frequency (monthly, fortnightly, or weekly).
3. For each offer, enter the Lender / Bank Name, Annual Interest Rate, Loan Tenure (term in years), Processing / Origination Fee, Prepayment Penalty (%), and Rate Type. A lender’s Loan Estimate or offer letter lists these.
4. Click Compare Loans Now. Save the result with Copy Summary, Export CSV, Export PDF, or Copy Shareable Link.
5. Use the Refinance Check and Prepayment Saver tabs for an existing loan.
How to read your results
| Result | What it means |
|---|---|
| Lowest total cost | The offer with the smallest total of payments plus fees. |
| True APR | The yearly cost of the loan including prepaid fees, worked out the way Truth in Lending rules describe. It’s the cost per dollar you actually receive. |
| Finance Charge | Total interest plus fees: the dollar cost of the credit. |
| Amount Financed | The loan amount minus prepaid fees, which is what you effectively receive. |
| Total of Payments | Every scheduled payment added together. |
| Prepay Penalty | The penalty percentage × loan amount, if you closed the loan early. |
Worked example: two $25,000 personal loan offers
Here’s one example run through the calculator: $25,000, repaid monthly over 5 years. Offer A: 11.5% with a $750 origination fee. Offer B: 12.5% with no fee.
| Result | Offer A (11.5%, $750 fee) | Offer B (12.5%, no fee) |
|---|---|---|
| Monthly payment | $549.82 | $562.45 |
| Total interest | $7,988.91 | $8,746.91 |
| Total cost (payments + fee) | $33,738.91 | $33,746.91 |
| Amount financed | $24,250 | $25,000 |
| APR | 12.84% | 12.50% |
The two measures point in different directions. Offer A costs $8 less in total dollars, but it has the higher APR because the $750 fee means you receive only $24,250 while paying interest on $25,000. Offer B costs slightly more in dollars and puts $750 more in your hands. Seeing both figures side by side is the point of the comparison.
🧮 How this was calculated
- Monthly rate for Offer A: 11.5% ÷ 12 = 0.958%. Month 1 interest: $25,000 × 11.5% ÷ 12 = $239.58
- Payment: $25,000 × r(1+r)60 ÷ ((1+r)60 − 1) = $549.82, so $549.82 − $239.58 = $310.24 of principal in month 1
- Total of payments: $549.82 × 60 = $32,988.91 (unrounded payment). Interest: $32,988.91 − $25,000 = $7,988.91
- Total cost: $32,988.91 + $750 fee = $33,738.91. Finance charge: $7,988.91 + $750 = $8,738.91
- APR: the yearly rate at which 60 payments of $549.82 repay the $24,250 amount financed ($25,000 − $750) = 12.84%
Assumptions: fixed rates · every payment on time · the fee is paid at closing or taken from the loan proceeds · no prepayment.
Example figures are illustrative, not averages or statistics.
Methodology and sources
1. Payment: the standard amortization formula, with the annual rate divided by the number of payments per year (12, 26, or 52).
2. APR: the rate that makes the payments equal the amount financed (loan amount minus prepaid fees), found by iteration and multiplied by the payments per year. This follows the approach behind the APR and the other disclosures in Regulation Z, 12 CFR 1026.18: amount financed, finance charge, total of payments, and the payment schedule. The CFPB explains the difference between an interest rate and an APR.
3. Floating rates are modeled at today’s rate for the whole term; real payments can change.
4. Refinance Check: compares interest left on the current loan with interest on the new loan, minus fees and any prepayment penalty; break-even = switching costs ÷ monthly payment savings.
5. Prepayment Saver: adds extra payments to principal each month and counts interest until the balance is zero. It doesn’t apply prepayment penalties.
6. Not included: taxes, insurance, late fees, and lender-specific rounding.
Frequently Asked Questions
1. Why is the loan with the lowest monthly payment not always the best?
Ans: A loan with a longer repayment term gives you a lower monthly payment, but because you stretch the debt out over a longer period, you end up paying significantly more in total interest.
2. Why isn’t the loan with the lowest monthly payment always cheapest?
Ans: A lower payment often comes from a longer term, which means paying interest for more months. A loan can also have a low rate but a large upfront fee. Total cost and APR capture both, which is why the calculator shows them next to the payment.
3. What is the difference between an interest rate and an APR?
Ans: The interest rate is what the lender charges on the balance. The APR also includes certain fees, such as origination fees, spread over the loan’s term and expressed as a yearly rate. When a loan has fees, its APR is higher than its interest rate.
4. Can the APR and total cost disagree?
Ans: Yes. APR measures cost per dollar you actually receive, while total cost counts dollars paid. A loan with a fee deducted from the proceeds can cost fewer total dollars but have a higher APR, as in the worked example on this page.
5. Does comparing loan offers hurt my credit score?
Ans: Using this calculator doesn’t affect your credit. Applying for loans can lead to hard inquiries. myFICO explains that FICO scores count several mortgage, auto, or student loan inquiries within a short shopping period as one inquiry. Many lenders also offer prequalification that uses a soft inquiry.
6. When does refinancing save money?
Ans: When the interest saved is larger than the cost of switching (fees plus any prepayment penalty). The Refinance Check tab shows the net savings and the number of months the lower payment takes to cover those costs. A longer new term can lower the payment but add interest.
7. What is a prepayment penalty?
Ans: A fee some lenders charge if you pay a loan off early. For consumer loans, Truth in Lending disclosures must say whether a penalty may apply. The calculator shows the penalty in dollars so you can compare offers.
Kevin Brown researches personal finance topics using official sources; he is not a licensed financial advisor or mortgage lender. Last reviewed: October 2026.
