Loan Comparison Calculator

How to compare loans the smart way

When you apply for a loan, lenders rarely make it easy to compare offers. One advertises a low rate but piles on fees. Another has zero fees but a higher rate. This calculator puts three offers side by side — same loan amount, different terms — and reveals which one truly costs you the least.

The two numbers that matter

• Total cost (monthly payment × number of months + fees): how much the loan actually costs you over its full life. Lower is better.
• True APR: a single percentage that captures interest + fees, making it easy to compare loans of different sizes and terms.

Short term vs. long term: the classic trade-off

A shorter loan term means higher monthly payments but much less interest overall. A longer term lowers your monthly payment but can double or triple your total interest. Use this calculator to find your sweet spot — the option you can comfortably afford that still minimizes total cost.

Example: On a $10,000 loan, going from 5 years at 7% to 3 years at 5% raises your monthly payment from ~$198 to ~$300, but saves you over $1,100 in total interest.

Beyond the numbers: what else to check

• Prepayment penalties: can you pay off early without fees?
• Late payment policies: grace periods and penalty APRs
• Fixed vs. variable rate: variable loans can spike if rates rise
• Lender reputation: read reviews, check the Better Business Bureau