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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.

Monthly PaymentsInterest AnalysisAmortizationCost Comparison

Compare Loans

Best Value

Loan A

Monthly Payment
$1,002
Principal$50,000
Total Interest$10,114
Total Fees$1,000
Total Cost$61,114
Term
60 months(5.0 years)

Loan B

Monthly Payment
$840
Principal$50,000
Total Interest$10,516
Total Fees$1,750
Total Cost$62,266
Term
72 months(6.0 years)

Potential Savings

Loan A saves you vs Loan B:
$1,152
1.8% less total cost

Balance Over Time

Interest & Fees Breakdown

First Year Payment Schedule

MonthLoan ALoan 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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