Personal Loan Calculator
Calculate personal loan payments, total interest, and total cost. Compare terms from 12–84 months with optional origination fee impact on true cost.
Loan Comparison Calculator
Compare up to 4 loan offers side by side on APR, monthly payment, total interest, and total cost. Find the cheapest loan with this free comparison tool.
Loan A
$
%
mo
$
Loan B
$
%
mo
$
Comparison
| Offer | Monthly Payment | Total Interest | Total Cost | Effective APR |
|---|---|---|---|---|
| Loan A | $400.76 | $4,046.00 | $4,446.00 | 8.36% |
| Loan B ★ | $488.26 | $3,436.00 | $3,436.00 | 8% |
Best Deal⧉
Loan B
Lowest total cost: $3,436.00
You Save⧉
$1,010.00
vs most expensive offer
Planning notes, formulas, and examples
About the Loan Comparison Calculator
When shopping for a loan, you will often receive multiple offers with different combinations of interest rates, terms, and fees. A loan with a lower rate is not always the cheapest option — origination fees, longer terms, and compounding differences can make a seemingly affordable loan cost significantly more over its lifetime. The only reliable way to compare offers is to calculate the total cost of each one.
This Loan Comparison Calculator lets you enter up to four loan offers side by side and see the monthly payment, total interest, total cost, and effective APR for each. By normalizing every offer to its true all-in cost, you can identify the cheapest loan regardless of how each lender structures their pricing.
Whether you are comparing personal loans, auto loans, home equity loans, or any other fixed-rate financing, this calculator gives you a clear, apples-to-apples comparison that cuts through confusing marketing claims and helps you save money.
When This Page Helps
Lenders structure their offers to look attractive — low rates with high fees, or long terms with low payments that hide massive interest costs. Without a calculator that shows total cost, you are comparing apples to oranges. This calculator levels the playing field by computing the true cost of each offer, so you can make a confident decision based on data rather than on whichever lender has the best marketing.
How to Use the Inputs
- Enter the loan amount, interest rate, term (in months or years), and any origination fees for Loan A.
- Enter the same details for Loan B and optionally Loans C and D.
- The calculator computes monthly payment, total interest, and total cost for each loan.
- Compare the results in the side-by-side table.
- The loan with the lowest total cost is highlighted as the best deal.
- Adjust terms or amounts to run different scenarios.
Formula used
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = monthly rate, n = months.
Total Interest = (Monthly Payment × n) − Principal.
Total Cost = Total Interest + Fees.
Effective APR accounts for fees by solving for the rate that equates net proceeds to the payment stream.Example Calculation
Result: Loan A: $401/mo, $4,046 total interest, $4,446 total cost | Loan B: $488/mo, $3,440 total interest, $3,440 total cost
Despite the higher rate, Loan B costs $1,006 less overall because the shorter 48-month term dramatically reduces interest. Loan A has a lower monthly payment but the longer term and origination fee make it the more expensive option. Total cost comparison reveals the true winner.
Tips & Best Practices
- Always compare total cost, not just monthly payment — a lower payment over a longer term usually costs more.
- Include origination fees in the comparison; a "no-fee" loan at a slightly higher rate may still be cheaper overall.
- If cash flow is tight, the lowest monthly payment may be the right choice even if total cost is higher.
- Ask lenders if origination fees can be rolled into the loan or waived for existing customers.
- Use the effective APR (which includes fees) as the single best number for comparing offers.
- Compare at least 3 lender offers before committing to ensure you are getting a competitive deal.
Why Total Cost Is the Only Fair Comparison
Monthly payment comparisons are inherently misleading because they do not account for how long you will be making those payments. A $300/month payment for 60 months costs $18,000 total, while a $350/month payment for 36 months costs only $12,600. Total cost — principal plus interest plus fees — is the only metric that captures the complete picture.
Understanding Effective APR
Effective APR adjusts the stated interest rate to include mandatory fees, giving you a single number that represents the true annual cost of borrowing. Two loans with the same stated rate but different fee structures will have different effective APRs. By law, lenders must disclose APR, but it is always worth verifying with your own calculation.
The Term Length Trade-Off
Shorter loan terms have higher monthly payments but dramatically lower total interest. Longer terms ease monthly cash flow but compound interest over more months. The ideal term balances affordability (can you make the payment?) with efficiency (minimizing total interest). Most borrowers benefit from choosing the shortest term they can comfortably afford.
Pre-Qualification vs. Final Offer
Remember that pre-qualification rates are estimates based on a soft credit check. The final offer may differ after the lender completes a full underwriting review. Compare final offer documents, not pre-qualification estimates, for an accurate comparison.
Sources & Methodology
Last updated:
Methodology
This page calculates each offer's standard amortized monthly payment from amount, rate, and term, then adds any entered upfront fee to the lifetime interest cost to produce a total-cost comparison. It also estimates an effective APR by solving for the rate at which the scheduled payment stream has a present value equal to the net proceeds after fees, so fixed-payment offers with different fee loads can be compared on a common basis.
It is a side-by-side planning worksheet, not a legal disclosure replacement. Real APR and total-cost comparisons depend on exactly which charges are finance charges and on the actual final offer documents, so the page is most reliable when the user enters the fee structure from the lender's formal disclosures.
Sources
- § 1026.22 Determination of annual percentage rate (Consumer Financial Protection Bureau) — Regulation Z APR rule used as the basis for the effective-APR comparison logic.
- Compare and negotiate your loan offers (Consumer Financial Protection Bureau) — CFPB guidance emphasizing comparison of upfront loan costs and total offer structure, not just the headline rate.
Frequently Asked Questions
The most reliable way is to compare the total cost of each loan, which includes all interest payments plus fees. Monthly payment comparisons are misleading because a lower payment often means a longer term and more total interest. The effective APR is also a good single-number comparison that accounts for fees.
A lower rate combined with a longer term, higher fees, or different compounding can result in a higher total cost. For example, a 6% loan over 7 years costs more in total interest than a 7% loan over 4 years. Fees also add to the effective cost. Always look at total cost, not just the rate.
The interest rate is the base cost of borrowing, while APR (Annual Percentage Rate) includes the interest rate plus mandatory fees like origination charges, expressed as a yearly rate. APR gives a more complete picture of a loan's cost and is the better number for comparing offers from different lenders.
Not necessarily. The lowest payment usually means the longest term, which results in more total interest. Choose the shortest term you can comfortably afford. However, if cash flow is a critical concern, a lower payment with a longer term may be appropriate — just understand you will pay more over time.
Financial experts recommend getting at least three to five quotes. Multiple applications within a short window (typically 14-45 days depending on the scoring model) count as a single hard inquiry on your credit report, so there is minimal credit score impact from rate shopping.
They can matter significantly, especially for smaller loans. A 3% origination fee on a $10,000 loan adds $300 to the cost. On a $50,000 loan, it adds $1,500. Always include fees in your total cost calculation. Some lenders charge no origination fee but compensate with a slightly higher rate.
Yes. You can compare a personal loan against a home equity loan, or a credit union offer against a bank offer. As long as you enter the correct rate, term, and fees for each, the calculator shows true total cost regardless of loan type.
This calculator compares loans at the amounts you enter. If you are borrowing different amounts from different lenders, enter each offer as-is and compare total cost. For a pure rate comparison, use the same loan amount across all offers.
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