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.
Total Cost of Borrowing Calculator
Calculate the true total cost of any loan including interest, origination fees, closing costs, and all charges. See the real price of borrowing beyond the interest rate.
$
%
mo
$
$
$
$
$
Total Cost of Borrowing⧉
$8,518.00
$6,068.00 interest + $2,450.00 fees
Monthly Payment⧉
$626.14
$601.14 loan + $25.00 fees
Cost per Dollar⧉
$0.284
for every $1 borrowed
Annual Cost⧉
$1,704.00
average per year
Total Paid to Lender⧉
$38,518.00
on $30,000.00 principal
Total Interest⧉
$6,068.00
Total interest over loan life
Cost Breakdown
| Component | Amount | % of Total |
|---|---|---|
| Total Interest | $6,068.31 | 71.2% |
| Origination Fee | $900.00 | 10.6% |
| Application Fee | $50.00 | 0.6% |
| Monthly Insurance | $1,500.00 | 17.6% |
| Total | $8,518.00 | 100% |
Term Comparison
| Term | Monthly | Interest | Total Cost |
|---|---|---|---|
| 36 mo (3 yr) | $958.19 | $3,595.00 | $5,445.00 |
| 48 mo (4 yr) | $750.37 | $4,818.00 | $6,968.00 |
| 60 mo (5 yr) ← | $626.14 | $6,068.00 | $8,518.00 |
| 72 mo (6 yr) | $543.70 | $7,347.00 | $10,097.00 |
| 84 mo (7 yr) | $485.15 | $8,652.00 | $11,702.00 |
Planning notes, formulas, and examples
About the Total Cost of Borrowing Calculator
The interest rate on a loan tells only part of the story. Origination fees, closing costs, insurance premiums, application fees, and other charges can add thousands to your actual borrowing cost. Two loans with the same interest rate can have very different total costs once fees are included.
The Total Cost of Borrowing Calculator gives you a unified, all-in view of what a loan really costs. Enter the principal, rate, term, and all associated fees to see the complete picture — total interest paid, total fees, cost per dollar borrowed, and effective annual cost.
This calculator works for any loan type — mortgage, personal loan, auto loan, student loan, or business loan. Use it to compare offers from different lenders on a true apples-to-apples basis. Many borrowers focus on the monthly payment alone, but the real measure of a loan cost includes all interest, fees, and charges over its full term. This calculator reveals the complete picture so you know exactly what you are agreeing to pay.
When This Page Helps
Lenders advertise interest rates but often bury fees in the fine print. An origination fee of 3% on a $30,000 loan adds $900 upfront. Monthly insurance premiums, annual fees, and processing charges compound the cost further. This calculator aggregates every cost line item so you can see the real price tag and compare lenders honestly.
How to Use the Inputs
- Enter the loan principal amount.
- Enter the interest rate and loan term.
- Enter any upfront fees (origination, closing costs, application fees).
- Enter any recurring fees (monthly insurance, annual fees).
- Review total interest, total fees, all-in cost, and cost per dollar borrowed.
- Compare against other loan offers using the same inputs.
Formula used
Total cost = Total interest + Upfront fees + (Monthly fees × months) + (Annual fees × years). Cost per dollar = Total cost / Principal. Effective annual cost = Total cost / Years. Monthly payment = P × r(1+r)^n / ((1+r)^n − 1).Example Calculation
Result: $7,968 total cost ($6,018 interest + $1,950 fees)
A $30,000 loan at 7.5% for 60 months has a $601.35/month payment and $6,018 in total interest. Add a $900 origination fee, $50 application fee, and $25/month insurance ($1,500 over 60 months), and the true total cost is $7,968. That is $0.266 per dollar borrowed, or $1,594/year in borrowing costs.
Tips & Best Practices
- Always ask for a full fee disclosure before signing — lenders must provide this under TILA (Truth in Lending Act).
- Compare total cost, not just monthly payment — a longer term lowers payments but increases total cost.
- Origination fees of 1-6% are common on personal loans — factor them into your comparison.
- Monthly insurance premiums (PMI, GAP insurance) add significant cost over the loan life.
- A no-fee loan often has a higher interest rate — calculate which option has the lower total cost.
- Use this calculator alongside the APR calculator for the most complete cost picture.
Hidden Costs That Add Up
Beyond interest, common hidden costs include origination fees (1-6% of the loan), mortgage insurance (PMI at 0.5-1% annually), GAP insurance on auto loans, annual account maintenance fees, and credit insurance premiums. On a $200,000 mortgage, PMI alone can cost $1,000-$2,000 per year until you reach 20% equity.
The Term Trap
Extending a loan term from 48 to 72 months lowers your monthly payment but can increase total interest by 40-60%. A $25,000 auto loan at 6% costs $4,799 in interest over 48 months but $7,316 over 72 months — an extra $2,517 for the convenience of a lower payment.
Comparing Lender Offers
When comparing loan offers, normalize everything to total cost. Lender A may offer 6.5% with no fees, while Lender B offers 5.9% with a 2% origination fee. On a $30,000 loan for 60 months, Lender A's total cost is $5,168 while Lender B's total cost is $5,149 — nearly identical despite the rate difference.
Using Total Cost for Negotiation
Armed with total cost calculations, you can negotiate more effectively. If a lender offers a low rate but high fees, show them the total cost comparison and ask them to reduce fees. Lenders often have flexibility on origination fees and processing charges.
Sources & Methodology
Last updated:
Methodology
This page calculates the scheduled principal-and-interest payment from the loan amount, APR, and term, then adds the entered upfront charges, recurring monthly charges, and annual fees to produce an all-in lifetime borrowing-cost estimate. It also reports cost per dollar borrowed, average annual cost, and term comparisons that hold the fee assumptions constant while changing the repayment horizon.
The result is an aggregation worksheet rather than a legal disclosure statement. Some fees are included in APR and some are not, optional products may not be required to obtain credit, and real offers can differ in timing or cancellation rules, so the page is intended to help users budget and compare fee structures rather than to replicate a specific disclosure form.
Sources
- Compare and negotiate your loan offers (Consumer Financial Protection Bureau) — CFPB comparison guidance highlighting upfront loan costs and other charges that change the real cost of credit.
- § 1026.37 Content of disclosures for certain mortgage transactions (Consumer Financial Protection Bureau) — Regulation Z Loan Estimate rule showing how origination charges and other cost buckets are categorized in official disclosures.
Frequently Asked Questions
Any expense directly tied to obtaining and maintaining the loan: interest, origination fees, closing costs, application fees, appraisal fees, credit report fees, monthly insurance premiums (PMI, GAP), annual fees, prepayment penalties, and late fees. This calculator lets you include all of these.
APR expresses the annual cost of borrowing as a percentage, including certain fees. Total cost is the actual dollar amount you pay above the principal. Both are useful — APR for comparing rates, total cost for understanding the real dollar impact on your budget.
Fees. A loan at 7% with a 3% origination fee costs more than a loan at 7% with no fees. Additionally, loan term matters — a 7% loan for 5 years costs less total interest than a 7% loan for 7 years, even though the monthly payment is higher.
Cost per dollar borrowed divides total borrowing cost by the principal. If you borrow $30,000 and the total cost is $7,968, you pay $0.266 for every dollar borrowed. This metric makes it easy to compare loans of different sizes.
Usually, but not always. A lower total cost with a much higher monthly payment may strain your cash flow. Consider total cost alongside monthly payment affordability, flexibility (prepayment options), and your time horizon (will you keep the loan to term?).
No. APR includes interest, origination fees, and some closing costs, but excludes optional fees like late fees, prepayment penalties, and some third-party fees. The total cost of borrowing calculator captures all fees you input, giving a more complete picture.
More in this topic
Loan Origination Fee Impact Calculator
Calculate the true cost of your loan after origination fees. See your effective APR and how much fees add to the total borrowing cost over the loan term.
Installment Loan Calculator
Calculate monthly payments, total interest, and a full amortization schedule for any fixed installment loan. Works for personal, auto, student, and other loan types.