Loan Comparison Calculator

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

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Consumer Tools

$

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

Putting two loan offers next to each other turns an abstract decision into a concrete one. Side by side, you can read each option's monthly payment, total interest paid, total cost, and effective Annual Percentage Rate (APR) in the same view. With interest rates moving and lending products multiplying in 2026, that comparison is where borrowers find the differences that add up to thousands of dollars over the life of a loan.

Each side of the comparison runs on standard amortization math. The monthly payment comes from 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). Total interest is then the sum of every monthly payment minus the principal, and total cost is principal plus that total interest.

Fees deserve as much attention as the rate itself, since lenders often roll them into the APR where they are easy to overlook. Prepayment penalties are another line to check, because they can reshape your total cost if you intend to retire the loan ahead of schedule. For the comparison to mean anything, line the two offers up on similar terms and conditions before reading the results.

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.

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