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Finance / Borrowing / Loans

Loan Comparison Calculator

Compare two loan offers or payoff plans side by side, then see the differences in monthly payment, total interest, total cost, and payoff date.

Calculator

Enter your values and view the result instantly.

Change any field below to update the answer straight away.

Scenario A

Compare your current loan

Scenario B

Compare a second offer or payoff plan

$1,279.43

Scenario B costs less overall

$696.35

Scenario A monthly payment

$733.18

Scenario B monthly payment

$6,780.96

Scenario A total interest

$5,501.53

Scenario B total interest

Scenario B finishes 4 months sooner

Use this loan comparison calculator to compare monthly payment, total interest, total cost, and payoff timing before choosing the better borrowing option.

Comparison table

Which loan is cheaper and faster to clear?

MetricScenario AScenario B
Monthly payment$696.35$733.18
Total interest$6,780.96$5,501.53
Total repaid$41,780.96$40,501.53
Projected payoffMar 2031Nov 2030

Loan Comparison

Comparing loan offers, monthly payments, and total borrowing cost

A loan comparison calculator helps you evaluate two borrowing options side by side instead of looking at each loan in isolation. It is a practical online calculator for comparing monthly payment, total interest, total cost, and payoff timing so you can see which loan is cheaper overall and which one clears faster.

What a loan comparison calculator is helping you decide

When borrowers compare loans, the monthly payment is often the first number they notice. That number matters, but it is not the full story. A lower monthly payment can come from a lower rate, a longer term, or a combination of the two. In many cases, the lower payment also means the debt remains outstanding longer and ends up costing more in total interest over the life of the loan.

That is why a loan comparison calculator is useful as both a planning calculator and a comparison calculator. It shows two loan scenarios side by side so you can compare not only the monthly payment but also the total repaid, the total interest paid, and the projected payoff date. For anyone searching a simple loan comparison calculator online, those are usually the figures that matter most in real decision-making.

Core loan-comparison maths

Each scenario in this calculator uses the standard fixed-rate loan payment formula. The monthly payment is determined from the loan amount, the monthly interest rate, and the number of monthly payments across the term. If an extra monthly payment is added, that extra amount reduces principal sooner, which lowers future interest and can shorten the payoff schedule.

Once each loan is calculated separately, the comparison step is straightforward. The tool compares actual monthly payment, total interest, total cost, and payoff timing between Scenario A and Scenario B. The difference values help you see how much one option saves or costs compared with the other.

M = P x r / (1 - (1 + r)^(-n))

M is the scheduled monthly payment, P is the loan amount, r is the monthly interest rate, and n is the total number of monthly payments.

Actual monthly payment = Scheduled monthly payment + Extra monthly payment

An extra payment increases the amount paid each month and can reduce the number of months needed to clear the balance.

Loan difference = Scenario B result - Scenario A result

The comparison tool then measures the gap between the two loans across total cost, interest, monthly payment, and payoff timing.

Why total cost often matters more than the headline payment

A longer loan term can make borrowing look easier because it lowers the monthly payment, but it often increases the total interest paid. That is one of the main reasons a free online calculator like this is helpful. It makes the trade-off visible right away: a loan with the lower monthly payment may be the more expensive option overall.

This is also why consumers are often advised to compare more than one figure when shopping for a loan. Monthly affordability matters, but so do rate, fees, total borrowing cost, and how quickly principal is repaid. A useful loan comparison calculator therefore answers more than one question at once: which option is easier month to month, which option costs less overall, and how much faster does one loan finish than the other?

  • A lower interest rate usually reduces both monthly payment and total interest.
  • A longer term often lowers the monthly payment but increases total interest paid.
  • Extra monthly payments usually reduce total cost by cutting the balance sooner.
  • Two loans with the same amount financed can still have very different total costs.

Using loan comparisons well

This loan comparison calculator is best used early in the decision process. It helps you compare refinancing options, lender offers, repayment plans, or the impact of adding extra monthly payments to one loan but not another. Used alongside a loan calculator or mortgage calculator, it gives a broader view of how borrowing choices change both affordability and long-term cost.

As with any estimator calculator, the result is only as good as the assumptions entered. Real loan offers may also include fees, closing costs, prepayment terms, or insurance requirements that are not captured by a simple payment comparison. Even so, this remains a strong practical calculator for answering one of the most common borrowing questions: which loan is actually the better deal when all the main numbers are compared side by side?

Further reading

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