A lower rate with a fee
$10,000 over 5 years: loan A at 5% with no fee costs $188.71 a month and $1,322.74 in interest; loan B at 4% with a $300 fee costs $184.17 a month. Counting the fee, loan A is cheaper by $27.17.
Loan Comparison Calculator
Compare two loan offers by monthly payment, total interest and total cost with fees.
Result
Enter your values and select Calculate to see the result.
Runs in your browser — nothing you enter is sent to a server.
How the Loan Comparison Calculator works
Enter two offers — amount, interest rate, term and any up-front fees (arrangement, origination or broker fees). For each loan you get the monthly payment, the total interest and the total cost including fees, and which one is cheaper overall.
Formulas
Monthly payment
M = P × r ÷ (1 − (1 + r)−n)
P is the amount, r the yearly rate ÷ 12, n the number of months. At 0% the payment is P ÷ n.
Total cost
total cost = M × n + fees; interest = M × n − P
Examples
Lower payment, higher cost
Stretching the same loan from 5 to 7 years lowers the payment but adds interest — compare the total cost, not only the payment.
Frequently asked questions
Why compare total cost instead of the rate?
Fees and different terms change what a loan really costs. The APR includes fees too, but only over the full term.
What about early repayment?
If you may repay early, a loan with no up-front fee and no early-repayment charge usually wins, even at a slightly higher rate.
Does it work for mortgages?
Yes — any fixed-rate loan with equal monthly payments.
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