Loan Comparison Calculator

Compare two loans side by side on monthly payment, total interest, total cost, and APR.
$

Loan A

%
months
$

Loan B

%
months
$

Loan A — Monthly Payment

$1,580.17

Loan B — Monthly Payment

$2,109.64

Side-by-Side Comparison

Loan Amount$250,000.00
Loan A — Rate / APR6.50% / 6.62%
Loan B — Rate / APR6.00% / 6.32%
Loan A — Monthly Payment$1,580.17
Loan B — Monthly Payment$2,109.64
Loan A — Total Interest$318,861.22
Loan B — Total Interest$129,735.57
Loan A — Total Cost$321,861.22
Loan B — Total Cost$134,735.57

Verdict

Loan B saves you $187,125.65 over the life of the loan.

Use the Loan Comparison Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Loan Comparison Calculator helps you evaluate two different loan options side-by-side, providing crucial insights into their monthly payments, total interest paid, total cost, and effective Annual Percentage Rate (APR). This tool is essential for making informed borrowing decisions in 2026, especially with fluctuating interest rates and diverse lending products. Understanding these differences can save you thousands over the life of a loan.

The calculator utilizes standard amortization formulas to determine monthly payments, total interest, and total cost. For each loan, the monthly payment is calculated using the formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate (APR/12), and n is the total number of payments (loan term in years * 12). The total interest is the sum of all monthly payments minus the principal, and total cost includes principal plus total interest.

When comparing loans, always consider all fees, not just the advertised interest rate, as these are often folded into the APR but can be hidden. Be mindful of prepayment penalties, which can significantly impact your total cost if you plan to pay off the loan early. Also, ensure you're comparing loans with similar terms and conditions for an accurate assessment.

Example: Comparing a Personal Loan to a Credit Union Loan in 2026

  1. 1 Loan A (Personal Loan): Principal: $20,000, Interest Rate: 8.5% APR, Term: 5 years. Loan B (Credit Union Loan): Principal: $20,000, Interest Rate: 7.9% APR, Term: 5 years. Assume no additional fees for simplicity in this example.
  2. 2 For Loan A: Monthly Payment = $410.25, Total Interest = $4,614.99, Total Cost = $24,614.99. For Loan B: Monthly Payment = $404.99, Total Interest = $4,299.39, Total Cost = $24,299.39.
  3. 3 Loan B (Credit Union Loan) results in a lower monthly payment by $5.26, a lower total interest paid by $315.60, and a lower overall total cost by $315.60 compared to Loan A (Personal Loan).
  4. 4 Even a seemingly small difference in APR can lead to significant savings over the loan's lifetime. This comparison clearly demonstrates that Loan B is the more financially advantageous option, highlighting the importance of using a comparison tool before committing to a loan in the current 2026 market.

Source: CFPB — Consumer Tools · Last updated: April 2026

Frequently Asked Questions

How do I compare two loan offers?
Compare the APR (not just the interest rate), total interest over the loan life, monthly payment, total cost including all fees, and any prepayment penalties. A lower rate with high fees can cost more than a slightly higher rate with no fees.
Is a shorter loan term always better?
Shorter terms have higher monthly payments but save significantly on interest. A $300,000 mortgage at 6.5% costs $383,000 in total interest over 30 years versus $140,000 over 15 years, but monthly payments are $700 more.
Should I choose a fixed or variable rate loan?
Fixed rates provide payment certainty. Variable rates start lower but can increase. Choose fixed if you plan to keep the loan long-term or if rates are expected to rise. Variable works for short-term loans or when rates are expected to drop.

You might also need

Debt Payoff Calculator — Snowball vs Avalanche Comparison

Compare debt snowball and avalanche payoff methods side by side. See which strategy saves more money and clears debt faster. Free, instant results and timeline.

Auto Loan Calculator

Calculate monthly car payments with trade-in and sales tax. Compare loan terms from 36 to 84 months.

Personal Loan Calculator

Calculate monthly personal loan payments, total interest, and effective APR including origination fees.