Loan Comparison Calculator

Comparing loans is harder than comparing prices, because the two numbers you see — rate and term — pull in opposite directions. A longer term usually lowers the monthly payment but raises the total interest, so the offer that feels cheaper each month can be the more expensive one overall. The only fair comparison is the total cost of each, next to the monthly figure. The rate is the price of money and matters more than anything else, but the term decides how long you pay it. Dropping the rate from seven and a half to six point nine per cent looks small; over a five-year loan on twenty thousand it is a real saving. Stretching the term from four years to five lowers the payment noticeably but usually adds interest, because you borrow the money for an extra year. Fees sit outside the headline rate. Origination charges, administration fees and insurance can each add to the true cost, and a loan with a slightly higher rate but no fees often wins. When you compare offers, compare the APR rather than the nominal rate where you can, because the APR folds in mandatory fees and gives a truer picture. This calculator compares two offers on the same amount, showing each monthly payment and total cost plus the differences. It assumes fixed rates and equal amounts borrowed; if the offers differ in amount or include fees, add those in by hand. Use the result as a like-for-like starting point and read the full agreement before signing.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.