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Loan Comparison Calculator

Compare two loan offers side by side to see which one actually costs less.

Loan A

Loan B

Loan A
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Loan B
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The difference
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Why the lower monthly payment isn't always the better deal

It's tempting to compare two loan offers by their monthly payment alone, but that number is shaped as much by the term as it is by the rate. A loan with a lower rate but a longer term can easily cost more in total interest than a loan with a higher rate but a shorter term — the monthly payment being smaller doesn't mean the loan is cheaper overall. This tool computes total cost for both scenarios directly, which is the number that actually answers "which loan costs less."

What to actually compare

Three numbers matter, not one: the monthly payment (does it fit your budget), the total interest (the real cost of borrowing), and the total cost (everything you'll pay, combined). A loan that wins on monthly payment can lose badly on total cost, and vice versa — which one matters more depends on whether cash flow or total cost is your bigger constraint right now.

Frequently asked questions

Should I always pick the loan with the lower monthly payment?

Not necessarily. A lower monthly payment often comes from a longer term, which usually means paying more in total interest over the life of the loan. Compare total cost, not just the monthly payment, before deciding.

Why would two loans with the same rate have different total costs?

Different loan terms. A shorter term at the same rate pays off faster with less total interest, even though the monthly payment is higher.