Loan Comparison Calculator
Compare up to 3 loans side by side. See monthly payments, total interest, fees, and find the best deal with full amortization schedules.
Compare Loans
Loan A
Loan B
Potential Savings
Balance Over Time
Interest & Fees Breakdown
First Year Payment Schedule
| Month | Loan A | Loan B | ||||
|---|---|---|---|---|---|---|
PrincipalInterestBalance | PrincipalInterestBalance | |||||
| 1 | $689$313$49,311 | $570$271$49,430 | ||||
| 2 | $694$308$48,617 | $573$268$48,858 | ||||
| 3 | $698$304$47,919 | $576$265$48,282 | ||||
| 4 | $702$299$47,216 | $579$262$47,703 | ||||
| 5 | $707$295$46,510 | $582$258$47,121 | ||||
| 6 | $711$291$45,798 | $585$255$46,535 | ||||
| 7 | $716$286$45,083 | $588$252$45,947 | ||||
| 8 | $720$282$44,363 | $592$249$45,355 | ||||
| 9 | $725$277$43,638 | $595$246$44,761 | ||||
| 10 | $729$273$42,909 | $598$242$44,162 | ||||
| 11 | $734$268$42,175 | $601$239$43,561 | ||||
| 12 | $738$264$41,437 | $605$236$42,957 | ||||
How to Compare Loans
Key factors to consider when choosing between loan options.
Monthly Payment
The amount you'll pay each month. Lower payments mean better cash flow, but watch for longer terms that increase total cost.
Total Interest
The true cost of borrowing. A lower rate with longer term can cost more than a higher rate with shorter term.
Fees & Charges
Origination fees, application fees, and other charges add to your total cost. Factor these into your comparison.
Loan Term
Shorter terms = higher payments but less interest. Longer terms = lower payments but more interest over time.
APR
APR includes interest rate plus fees, giving you a better comparison than interest rate alone.
Total Cost
The ultimate comparison: all payments plus all fees. This is what you actually pay over the life of the loan.
APR vs Interest Rate
Understanding the difference is key to comparing loans.
Interest Rate
- The basic cost of borrowing money
- Applied to your principal balance
- Does NOT include fees or charges
- Can be misleading for comparison
APR (Better for Comparison)
- Includes interest rate PLUS all fees
- Expressed as an annual percentage
- Shows true cost of the loan
- Required by law for consumer loans
Frequently Asked Questions
Common questions about comparing loans.
How do I compare loans effectively?
Look at total cost (all payments + fees), not just monthly payment or interest rate. A lower rate with higher fees might cost more. Use APR for comparison since it includes fees. Also consider cash flow: can you afford higher payments to save on interest?
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms provide lower payments but cost more over time. Choose based on your cash flow needs. If you can afford higher payments, the shorter term usually saves money.
What fees should I watch for?
Common loan fees include: origination fees (1-8% of loan amount), application fees, underwriting fees, processing fees, prepayment penalties, and late payment fees. Always ask for a complete fee schedule before committing.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal and interest over the loan term. Early payments are mostly interest; later payments are mostly principal. Understanding this helps you see how quickly you build equity.
How is monthly payment calculated?
Monthly payment uses the loan amortization formula that creates equal payments covering both principal and interest. The formula factors in the loan amount, interest rate, and number of payments to determine a fixed monthly amount.
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