Compare up to 4 loan offers side by side on APR, monthly payment, total interest, and total cost. Find the cheapest loan with this free comparison tool.
When shopping for a loan, you will often receive multiple offers with different combinations of interest rates, terms, and fees. A loan with a lower rate is not always the cheapest option — origination fees, longer terms, and compounding differences can make a seemingly affordable loan cost significantly more over its lifetime. The only reliable way to compare offers is to calculate the total cost of each one.
This Loan Comparison Calculator lets you enter up to four loan offers side by side and instantly see the monthly payment, total interest, total cost, and effective APR for each. By normalizing every offer to its true all-in cost, you can identify the cheapest loan regardless of how each lender structures their pricing.
Whether you are comparing personal loans, auto loans, home equity loans, or any other fixed-rate financing, this tool gives you a clear, apples-to-apples comparison that cuts through confusing marketing claims and helps you save money.
Lenders structure their offers to look attractive — low rates with high fees, or long terms with low payments that hide massive interest costs. Without a calculator that shows total cost, you are comparing apples to oranges. This tool levels the playing field by computing the true cost of each offer, so you can make a confident decision based on data rather than on whichever lender has the best marketing.
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = monthly rate, n = months. Total Interest = (Monthly Payment × n) − Principal. Total Cost = Total Interest + Fees. Effective APR accounts for fees by solving for the rate that equates net proceeds to the payment stream.
Result: Loan A: $401/mo, $4,046 total interest, $4,446 total cost | Loan B: $488/mo, $3,440 total interest, $3,440 total cost
Despite the higher rate, Loan B costs $1,006 less overall because the shorter 48-month term dramatically reduces interest. Loan A has a lower monthly payment but the longer term and origination fee make it the more expensive option. Total cost comparison reveals the true winner.
Monthly payment comparisons are inherently misleading because they do not account for how long you will be making those payments. A $300/month payment for 60 months costs $18,000 total, while a $350/month payment for 36 months costs only $12,600. Total cost — principal plus interest plus fees — is the only metric that captures the complete picture.
Effective APR adjusts the stated interest rate to include mandatory fees, giving you a single number that represents the true annual cost of borrowing. Two loans with the same stated rate but different fee structures will have different effective APRs. By law, lenders must disclose APR, but it is always worth verifying with your own calculation.
Shorter loan terms have higher monthly payments but dramatically lower total interest. Longer terms ease monthly cash flow but compound interest over more months. The ideal term balances affordability (can you make the payment?) with efficiency (minimizing total interest). Most borrowers benefit from choosing the shortest term they can comfortably afford.
Remember that pre-qualification rates are estimates based on a soft credit check. The final offer may differ after the lender completes a full underwriting review. Compare final offer documents, not pre-qualification estimates, for an accurate comparison.
The most reliable way is to compare the total cost of each loan, which includes all interest payments plus fees. Monthly payment comparisons are misleading because a lower payment often means a longer term and more total interest. The effective APR is also a good single-number comparison that accounts for fees.
A lower rate combined with a longer term, higher fees, or different compounding can result in a higher total cost. For example, a 6% loan over 7 years costs more in total interest than a 7% loan over 4 years. Fees also add to the effective cost. Always look at total cost, not just the rate.
The interest rate is the base cost of borrowing, while APR (Annual Percentage Rate) includes the interest rate plus mandatory fees like origination charges, expressed as a yearly rate. APR gives a more complete picture of a loan's cost and is the better number for comparing offers from different lenders.
Not necessarily. The lowest payment usually means the longest term, which results in more total interest. Choose the shortest term you can comfortably afford. However, if cash flow is a critical concern, a lower payment with a longer term may be appropriate — just understand you will pay more over time.
Financial experts recommend getting at least three to five quotes. Multiple applications within a short window (typically 14-45 days depending on the scoring model) count as a single hard inquiry on your credit report, so there is minimal credit score impact from rate shopping.
They can matter significantly, especially for smaller loans. A 3% origination fee on a $10,000 loan adds $300 to the cost. On a $50,000 loan, it adds $1,500. Always include fees in your total cost calculation. Some lenders charge no origination fee but compensate with a slightly higher rate.
Yes. You can compare a personal loan against a home equity loan, or a credit union offer against a bank offer. As long as you enter the correct rate, term, and fees for each, the calculator shows true total cost regardless of loan type.
This calculator compares loans at the amounts you enter. If you are borrowing different amounts from different lenders, enter each offer as-is and compare total cost. For a pure rate comparison, use the same loan amount across all offers.