Loan Comparison Calculator | Compare 3 Loans Side by Side
Compare up to three loans simultaneously. Enter principal, interest rate, and term for each loan to see monthly payments, total interest paid, total cost, and a year-by-year remaining balance. Automatically ranks loans by cheapest total cost and highlights the best option.
What Is the Loan Comparison Calculator | Compare 3 Loans Side by Side?
Lenders quote APR, terms, and fees in ways that make direct comparison difficult. A loan with a lower rate but higher origination fees may cost more overall than one with a higher rate and no fees. The only apples-to-apples comparison is total cost of the loan — principal plus all interest plus all fees paid over the life of the loan. This calculator does that comparison side-by-side for up to three loans simultaneously.
- ›APR vs interest rate. The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes fees amortized over the loan term and is always higher than the rate for loans with origination costs. When comparing loans from different lenders, APR is the more honest comparison — but this calculator lets you include fees explicitly to see total cost directly.
- ›Loan term dramatically changes total interest. A $25,000 auto loan at 6.5% costs $3,484 in interest over 36 months but $5,865 over 60 months — $2,381 more for the flexibility of a lower monthly payment. Shorter terms save substantially.
- ›Extra payments have outsized impact. An extra $100/month on a 60-month auto loan at 6.5% pays it off 10 months early and saves $650 in interest. On a mortgage, the same principle applies at much larger scale.
- ›Origination fees can flip the comparison. Loan A at 5.5% with $2,000 in fees may cost more than Loan B at 5.75% with no fees — especially on shorter-term loans where there is less time to amortize the fee through lower interest.
Formula
Monthly Payment (Amortization)
M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
P = principal, r = monthly rate (APR / 12 / 100), n = total months
Total Cost of Loan
Total Cost = (M × n) + Origination Fees
Total Interest = Total Cost − Principal
Early Payoff with Extra Payment
Month-by-month amortization until balance reaches zero
Interest saved = standard total interest − early payoff total interest
How to Use
- 1
Enter loan details for up to 3 loans: principal, APR, term (months), and any origination fees.
- 2
Label each loan with the lender name for easy reference.
- 3
Optionally add an extra monthly payment to see early payoff impact.
- 4
Click Compare Loans to see side-by-side monthly payments and total costs.
- 5
Review the total cost bars and BEST badge to identify the most cost-efficient option.
- 6
Use the amortization chart to visualize how balances decline over time.
- 1Enter loan details for each column: Each loan can have a custom label (e.g., "Credit Union," "Bank Offer," "Online Lender"), principal, APR, term in months, and optional origination fee.
- 2Add extra monthly payment: If you plan to pay more than the required minimum, enter the extra monthly amount. The payoff date and interest saved update automatically.
- 3Compare monthly payments: The top row shows required monthly payment for each loan. Ranked from lowest to highest total cost.
- 4Review total cost bars: The cost bars show the proportional total cost (principal + interest + fees) for each loan. The BEST badge marks the lowest total cost.
- 5Read the savings statement: A summary line shows exactly how much choosing the best loan saves over the worst — in total dollars over the loan term.
- 6Inspect the balance chart: The amortization chart shows remaining balance year-by-year for all three loans, making payoff timelines visually clear.
Example Calculation
Example: $30,000 auto loan, three offers compared
Loan A: 6.9% APR, 60 months, $0 fees → $592/mo, total $35,520
Loan B: 6.5% APR, 60 months, $500 fees → $587/mo, total $35,718
Loan C: 5.9% APR, 48 months, $750 fees → $704/mo, total $34,494
Lower rate (Loan B) loses to higher rate (Loan A) due to $500 origination fee
Shorter term (Loan C) wins on total cost despite highest monthly payment
Best choice: Loan C saves $1,026 vs Loan A, $1,224 vs Loan B
Caveat: Loan C requires $112 more per month — affordability may decide
Understanding Loan Comparison | Compare 3 Loans Side by Side
The Total Cost Comparison Is the Only One That Matters
Lenders advertise monthly payments rather than total costs for a reason. A $200/month difference between a 36-month and 60-month loan feels significant, but the 60-month loan may cost $2,000 more over its life. Running a side-by-side total cost comparison before signing a loan agreement takes five minutes and can save thousands of dollars. Do this for every loan over $5,000 — auto loans, personal loans, home equity lines, student loan refinances, and mortgages.
When to Choose the Higher Monthly Payment
- ›Depreciating assets. For cars, motorcycles, and equipment that loses value over time, a shorter term ensures you pay off the loan before the asset's value drops below the balance. Being "underwater" on a car loan is a painful position if you need to sell or total the vehicle.
- ›When you have a windfall or bonus coming. If you plan to make a large lump-sum payment in 12–18 months, a shorter-term loan may already have a lower balance than you expect — choose accordingly.
- ›When the rate spread is significant. If Loan A (36 months) is at 5% and Loan B (60 months) is at 8%, the rate difference compounds enough that the shorter term's savings extend beyond just the term difference.
Frequently Asked Questions
What should I do if I can't afford the lowest total-cost option?
Monthly cash flow vs total cost is a genuine trade-off. Know exactly what the longer term costs in extra interest, then decide consciously. Avoid defaulting to the longest term without checking the cost difference.
How does the extra payment calculation work?
Extra payments go directly to principal. The calculator runs full month-by-month amortization to find the exact payoff date and interest saved. Check for prepayment penalties before applying extra payments.
Is a lower interest rate always better?
Lower rate loses to higher rate when origination fees are high relative to the rate difference. This calculator shows total cost (rate + fees) directly, which is the correct comparison metric.
Can I use this for mortgages?
Works for mortgages. Enter origination fees for points and lender fees. Property taxes, insurance, and PMI are not modeled — this tool compares the loan terms across lenders, not total housing cost.
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