Finance
Loan Comparison
Compare two loans side by side - monthly payment, total interest, and overall cost - to find the better deal.
Guide
How to use the Loan Comparison
The Loan Comparison helps you make a quick estimate, compare scenarios, and understand the numbers behind the result. It is designed for fast planning, with enough context to make the answer useful instead of just a number.
- Enter the amounts, rates, and time period that match the scenario you want to model.
- Review the main result first, then scan the supporting totals to understand what drives it.
- Change one input at a time to compare payments, interest, growth, savings, or break-even points.
Method
How this calculator works
It compares fixed-rate payments, lifetime interest and principal plus interest. It does not calculate fee-inclusive APR or early-exit costs.
This calculator is useful for choosing between competing loan offers.
Because assumptions matter, try a few values that represent optimistic, typical, and conservative cases.
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
Example
Worked example
Compare two $300,000 mortgage offers: 6.5% over 30 years versus 5.9% over 15 years. The 30-year costs $1,896 a month; the 15-year costs $2,515. The $619 higher payment buys you about $230,000 in avoided interest and a paid-off home in half the time — the calculator shows both sides so you can judge whether the cash flow trade-off fits your budget.
FAQ
Common questions
Can this calculator compare fee-inclusive APR?
No. Enter the contractual interest rate, not APR, for the payment calculation. Fees and early-exit costs are excluded. Compare lender disclosures separately.
How much does a 15-year mortgage save versus a 30-year?
On $300,000, a 30-year loan at 6.5% costs about $1,896 a month and $383,000 in lifetime interest. A 15-year at 5.9% costs about $2,515 a month but only $153,000 in interest — roughly $230,000 less, in exchange for the higher payment.
What information do I need for the Loan Comparison?
You usually need two loan amounts, contractual annual interest rates and terms in months; fees are excluded. You can change the inputs and recalculate as many times as needed.
How does the Loan Comparison calculate the result?
It compares fixed-rate payments, lifetime interest and principal plus interest. It does not calculate fee-inclusive APR or early-exit costs.
Are the results exact?
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
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