Loan Comparison Calculator
Compare two loans side-by-side. Calculate monthly payment differences, lifetime interest savings, and total cost of borrowing.
How to Compare Loan Offers Effectively
When shopping for a mortgage, vehicle loan, or debt consolidation package, lenders present complex combinations of interest rates, loan terms, and origination fees. Comparing loans on monthly payment alone can obscure tens of thousands in hidden lifetime interest charges.
Key Factors to Compare
- Monthly Cash Flow: Ensure the monthly payment comfortably fits within your debt-to-income (DTI) ratio.
- Total Interest Paid: The total finance charge paid to the lender above the borrowed capital.
- Upfront Fees & Points: Closing charges that must be paid out of pocket or financed into the loan balance.
Loan Comparison Scenarios
- ✓15-Year vs 30-Year Mortgage Comparison
Evaluate whether the lower interest rate and massive lifetime interest savings of a 15-year fixed mortgage justify the higher monthly payment.
- ✓Comparing Multiple Lender Loan Estimates
Pit offers from rival banks and credit unions against one another, accounting for differing APRs and upfront origination fees.
- ✓Mortgage Refinancing Break-Even
Verify whether refinancing to a lower interest rate will save enough interest to offset thousands in closing costs and title fees.
- ✓Auto Loan Term Optimization (48 vs 60 vs 72 Months)
See the true cost of stretching car loan payments over longer terms.
Why Use This Loan Comparison Tool
Side-by-Side Dual Option Analysis
Input differing principals, APRs, repayment terms, and upfront fees to compare two loan proposals directly.
Total Interest & Cost Differential
Highlights the net dollar amount saved over the life of the loan and differences in monthly cash outlay.
Upfront Fees & Points Accounting
Factors in discount points and loan origination charges for a 100% true total borrowing cost comparison.
Summary Copy & CSV Export
Export an audit-ready comparison table for financial advisors or mortgage broker negotiations.
Frequently Asked Questions
Why does a 15-year mortgage save so much more interest than a 30-year loan?
A 15-year loan pays down the principal balance twice as fast as a 30-year loan. Because interest is charged on the remaining principal each month, halving the loan duration cuts total lifetime interest payments by 50% to 65%, even with identical interest rates.
What is the difference between Interest Rate and APR?
The interest rate is the annual cost of borrowing the principal balance. The Annual Percentage Rate (APR) includes both the interest rate AND mandatory lender fees, points, and closing charges, reflecting the true comprehensive cost of the loan.
Are loan origination points worth paying to lower the interest rate?
Paying discount points upfront is worth it if you plan to stay in the home or keep the loan past the break-even period (Total Upfront Points Cost / Monthly Savings). If you expect to move or refinance in 2 to 3 years, paying points rarely pays off.
How do extra principal payments affect loan comparisons?
Making extra principal payments on a 30-year loan allows you to achieve the interest savings of a 15-year loan without committing to mandatory higher monthly payments.
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