Free Loan Comparison Calculator — Which Loan Costs Less?

Compare two loans side-by-side including rates, fees, and total cost

100% free, no signup
Total cost analysis, not just monthly payment

Compare Loan Options

Compare two different loan scenarios to find the best option for your situation

A

$
%
years
$
pts

B

$
%
years
$
pts
$

Apply the same extra payment to both loans for fair comparison

Comparison Results

B
Recommended: Loan B
$49.05
Monthly Savings
$12,158.89
Total Savings
Better Choice Because
Lower monthly payment and total cost

Loan Comparison Tips

Compare Total Costs

Look beyond monthly payments. Include closing costs, points, and total interest over the loan term.

Consider Your Timeline

If you plan to move or refinance soon, higher upfront costs for lower rates may not pay off.

Calculate Break-Even Point

Determine how long it takes for a loan with higher upfront costs to become more cost-effective.

Smart Loan Shopping

Making the right loan choice can save you thousands. Here's what to consider:

Rate vs. Points Trade-off
Lower rates often come with higher upfront costs. Calculate your break-even point.
Total Cost of Borrowing
Look at APR and total payments, not just monthly amount. Factor in all fees and costs.
Loan Term Impact
Shorter terms mean higher payments but less total interest. Consider your cash flow needs.

Frequently Asked Questions

What are points and should I pay them?

Points are prepaid interest where 1 point = 1% of the loan amount. Each point typically reduces your rate by 0.25%. Pay points if you plan to stay in the home long enough to recoup the cost through lower monthly payments.

How do closing costs affect my decision?

Closing costs vary significantly between lenders and loan types. Include all upfront costs in your comparison, not just the interest rate. A loan with a slightly higher rate but lower closing costs might be better for your situation.

Should I choose the loan with the lowest monthly payment?

Not necessarily. A lower monthly payment might come with higher total interest costs over the loan term. Consider your cash flow needs, how long you plan to keep the loan, and total cost of borrowing.

What is the difference between APR and interest rate?

Interest rate is the cost of borrowing the principal. APR includes the interest rate plus other loan costs like origination fees, making it a better tool for comparing loans. Always compare APRs when shopping for loans.

Important Disclaimer

This calculator provides estimates for comparison purposes only. Actual loan terms, rates, closing costs, and fees may vary based on your creditworthiness, loan program, lender requirements, and market conditions. Always obtain official loan estimates from lenders for accurate comparisons. This tool should not replace professional financial advice from qualified mortgage professionals.

Guide

Compare two loan offers side by side — mortgage, auto, personal, or business loans. This free loan comparison calculator shows monthly payments, total interest, closing costs, and which option costs less over the full loan term.

What to Compare Beyond the Interest Rate

The lowest interest rate does not always mean the cheapest loan. Points, origination fees, closing costs, and PMI can add thousands to your total cost. This calculator includes upfront costs so you see the true price of each option.

APR (Annual Percentage Rate) combines the interest rate with most loan fees, making it useful for apples-to-apples comparisons. When shopping for a mortgage or auto loan, always compare total cost over the period you expect to keep the loan.

When a Higher Monthly Payment Can Still Win

A loan with a lower rate but higher closing costs may only break even after several years. If you plan to refinance or sell within 3–5 years, a loan with lower upfront costs might be smarter even if the rate is slightly higher.

Use the comparison results to find your break-even point: how many months until the lower-rate loan recovers its extra fees through savings.

Tips for Getting the Best Loan

Get quotes from at least three lenders on the same day — rates change daily. Ask each lender for a Loan Estimate (mortgage) or full fee disclosure so you can enter accurate numbers here.

Negotiate closing costs and shop discount points only if you will keep the loan long enough to recoup them.

Key Takeaways

  • Compare total cost, not just monthly payment or rate alone.
  • Include closing costs and points in every comparison.
  • Match the loan term to how long you will actually keep the debt.
  • A slightly higher rate with lower fees can win for short timelines.