Loan Comparison Calculator: Which Loan Is Cheaper?
Compare two loan offers side by side, including upfront fees, to see which one really costs less.
Share your result
https://fastbuysale.com/tools/loan-comparison-calculator/Share result on WhatsAppEnter the amount, interest rate, term and fees for each offer and the calculator shows the monthly payment, total interest, total cost and the difference between the two.
Discuss, share or sell
▶ Get the FastBuySale appHow to use the Loan Comparison Calculator
- Enter the loan amount you need.
- Fill in the rate, term and upfront fee for Loan A.
- Do the same for Loan B.
- Read which loan is cheaper overall and by how much.
Guide
Why compare total cost, not just the rate
A loan with the lowest interest rate is not always the cheapest. Processing fees, origination charges and the length of the term all change the real cost. A longer term lowers the monthly payment but usually adds a lot of interest. This tool calculates each loan's monthly payment with the standard amortization formula and adds the fees to give the total amount you will pay.
Worked example
You need 10,000. Loan A charges 8% for 3 years with a 100 fee: the payment is about 313.36 and the total cost about 11,381. Loan B charges 7% for 5 years with no fee: the payment is lower, about 198.01, but the total cost rises to about 11,881. Loan A is about 500 cheaper overall, even though Loan B looks more affordable each month.
Monthly affordability versus total cost
Both matter. If the higher payment strains your budget, a longer loan may be the safer choice, and you can still prepay when money allows, as long as the lender does not charge an early repayment penalty. Ask each lender for the annual percentage rate (APR), which folds fees into a single comparable rate, and check whether insurance or other add-ons are bundled into the offer.
What else to check
Look for prepayment penalties, late fees, whether the rate is fixed or variable, and how interest is calculated. A variable rate may start lower but can rise. Secured loans, backed by a car or home, usually have lower rates than unsecured personal loans but put the asset at risk. Your credit score strongly affects the rates you are offered, so it can pay to improve it before borrowing.
Use it for any type of loan
Personal loans, car loans, student loans and small business loans all follow the same maths. The currency follows your location, and the calculation is done privately in your browser.
Key terms
- Interest rate
- The yearly price of borrowing, charged on the outstanding balance.
- Upfront fee
- Any processing, arrangement or origination charge paid when the loan starts; it counts towards total cost.
- Term
- How many years you take to repay; longer terms cut payments but raise interest.
- Total cost
- All monthly payments plus fees, the fairest single number for comparing offers.
- Prepayment
- Paying extra or settling early, which reduces interest unless the lender charges a penalty.
- Secured loan
- A loan backed by an asset such as a car or home, usually at a lower rate.
Frequently asked questions
What is APR?
The annual percentage rate combines the interest rate and most fees into one yearly rate, making offers easier to compare.
Is a lower monthly payment always better?
No. It often comes from a longer term that increases total interest. Compare total cost too.
Should fees be included?
Yes. Upfront fees are part of what the loan costs you, and this calculator adds them to the total.
Can I compare loans with different terms?
Yes, each loan has its own term, so you can compare a short loan with a long one.
Does it include early repayment?
No, it assumes you pay as scheduled. Extra payments would reduce the total interest.