How to compare loans
- Enter each offer's amount, interest rate, term and any upfront fees, such as origination or arrangement fees.
- The table compares monthly payment, total interest, total cost and true APR. The cheapest loan is highlighted.
- Leave Loan C empty if you're only comparing two offers.
The numbers that matter
- Monthly payment: what you need to budget for each month.
- Total cost: everything you'll pay: all payments plus fees. This is the real price of the loan.
- APR: the yearly cost including fees. It lets you compare offers with different fees fairly.
Example
Borrowing $15,000: Loan A at 9% for 5 years with no fee costs about $3,683 in interest. Loan B at 8.5% for 5 years but with a $600 fee costs about $3,465 in interest plus $600, which comes to $4,065. That's more than Loan A despite the lower rate. Its APR of roughly 10.3% reveals the difference.
Frequently asked questions
Why isn't the lowest interest rate always the cheapest loan?
Fees and loan length matter too. A loan with a slightly lower rate but a large origination fee, or a longer term, can cost more overall. Compare the total cost and the APR, which includes fees.
What is APR?
The annual percentage rate (APR) is the yearly cost of a loan including both interest and upfront fees. It's the best single number for comparing offers. This calculator works out APR from the rate, term and fees you enter.
Should I pick the lowest monthly payment?
Not necessarily. A longer term lowers the monthly payment but usually increases total interest. Choose the lowest total cost you can comfortably afford each month.
Are fees added to the loan or paid upfront?
This calculator treats fees as paid upfront or deducted from the money you receive, which is how most origination fees work and how APR is defined.