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 runs each loan through the same amortization math and compares monthly payment, total interest, and overall cost.
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
Should I choose the loan with the lower rate or lower fees?
It depends on how long you keep the loan. High fees with a low rate win over long horizons; low fees with a slightly higher rate win if you sell or refinance early. Compare total cost over the years you realistically expect to hold the loan.
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, rates, terms, and fees. You can change the inputs and recalculate as many times as needed.
How does the Loan Comparison calculate the result?
It runs each loan through the same amortization math and compares monthly payment, total interest, and overall cost.
Are the results exact?
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
Related
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Sources