Free Loan Comparison Calculator
Compare two to four loan offers side by side. See the monthly payment, total interest, fees, total cost and effective APR of each, and which one is cheapest.
Loan Comparison Calculator: Compare two to four loan offers side by side. See the monthly payment, total interest, fees, total cost and effective APR of each, and which one is cheapest. It is free, needs no sign-up and runs in your browser. How to use it: 1) pick how many loans to compare and enter each amount, rate, term and upfront fees; 2) choose reducing balance or flat rate for each offer; 3) read the cheapest loan, the side-by-side table, the chart and each amortization schedule. Loan offers are hard to compare when they quote different rates, terms, fees and rate types. This tool builds a full monthly schedule for each loan, adds upfront fees, and works out the effective APR, the true yearly cost once fees and the rate method are included.
How the loan comparison calculator works
Loan offers are hard to compare when they quote different rates, terms, fees and rate types. This tool builds a full monthly schedule for each loan, adds upfront fees, and works out the effective APR, the true yearly cost once fees and the rate method are included. All amounts the same? Loans are ranked by total cost of borrowing. If the amounts differ, they are ranked by effective APR.
Flat rate vs reducing balance
A reducing balance loan charges interest only on what you still owe. A flat rate loan charges interest on the full amount for the whole term, even after you repay part of it. A 6% flat rate for 5 years costs about the same as a 10.85% reducing rate.
Formulas
- Reducing balance payment:
EMI = P x i x (1 + i)^n / ((1 + i)^n - 1), with i the monthly rate and n the months. - Flat rate:
interest = P x rate x years, payment(P + interest) / n - Cost of borrowing:
total interest + fees - Effective APR: the monthly rate i that makes
P - feesequal the present value of all payments, times 12.
Example: 100,000 at 10% for 5 years costs 2,124.70 a month and 27,482.27 in interest. With a 1,000 fee the APR is 10.435%.
Limitations
Insurance, taxes, late fees and early repayment charges are not included. Flat-rate schedules split interest evenly by month, while some lenders use other methods. Lenders round payments differently. This is not financial advice, so ask each lender for its official cost statement.
Loan Comparison Calculator FAQs
How do I compare two loans with different rates and fees?
Look at the total cost of borrowing and the effective APR, not just the quoted rate. Enter both loans with their fees and the calculator adds interest and fees together and finds the APR that includes the fees. A loan with a lower rate but a big arrangement fee can end up costing more over the full term.
What is the difference between a flat rate and a reducing rate?
A flat rate charges interest on the original amount for the whole term. A reducing rate charges interest only on the balance you still owe, which falls each month. That is why a flat rate looks cheaper than it is. A 6% flat loan over 5 years has an effective APR close to 10.85%.
What is effective APR?
Effective APR is the yearly cost of a loan once fees and the rate method are included. The calculator finds the monthly rate at which the money you actually receive, the loan minus fees, equals the value of all your payments, then multiplies it by 12. It lets you compare offers on equal terms.
Is a longer loan term cheaper?
A longer term lowers the monthly payment but usually raises the total interest, because you borrow the money for longer. In the default example, a 7-year loan at 9.5% has a lower APR than a 5-year loan at 10%, yet it costs over 9,000 more in total. Choose the term that fits both your budget and total cost.
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