Free Loan Comparison Calculator

How it works

Enter two loan offers — amount, APR, and term for each — and this calculator works out the monthly payment, total paid, and total interest for both, then tells you plainly which loan costs less overall and by how much.

How the math works

Each loan’s monthly payment uses the standard amortization formula: M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount borrowed, r is the APR divided by 1200, and n is the number of monthly payments. A 0% loan is simply P ÷ n. Total cost is the payment times n, and total interest is the total minus the amount borrowed. That is why a lower APR over a much longer term can still cost more overall — you pay interest for more months.

Everyday uses

• Dealer vs. bank: compare the car dealer’s financing offer against your bank or credit union quote.
• Refinancing: check whether a refinance offer actually saves money or just stretches the loan out.
• Personal loans: weigh a shorter, higher-payment loan against a longer, cheaper-per-month one.

Frequently asked questions

Should I always pick the loan with the lower total cost? Almost always — but only if its monthly payment fits your budget comfortably. The verdict flags it when the cheaper loan asks for more each month.

Are fees and origination charges included? No. This compares the loans themselves. If one offer has setup fees, add them to that loan’s amount for a fairer comparison, or ask the lender for the APR, which already bakes in some fees.

Why can a lower APR end up costing more? Because of the term. Interest is charged every month the balance exists, so a slightly lower rate stretched over many more months can produce more total interest than a higher rate paid off quickly.