Money Calculators
Use this loan comparison calculator to compare two loan offers by monthly payment and total interest before choosing a term or rate.
Live calculator
A: $500.95 vs B: $453.12.
A: $5,056.92 vs B: $7,624.93.
60 payments for A, 72 for B.
Lower monthly payment and lower lifetime interest can point to different options. Use the table to decide whether monthly cash flow or total cost matters more for this decision.
Payment, term, total interest, and total paid for each option.
| Option | Payment | Term | Interest | Total paid |
|---|---|---|---|---|
| Option A | $500.95 | 60 months | $5,056.92 | $30,056.92 |
| Option B | $453.12 | 72 months | $7,624.93 | $32,624.93 |
Use this as a planning estimate. Taxes, fees, rates, account terms, provider policies, local rules, and timing can change real-world results.
Quick answer
Loan Comparison Calculator calculates loan comparison from loan amount, option A rate, option A years, option B rate, and option B years. The visible formula is Payment = principal x monthly rate / (1 - (1 + monthly rate)^-months).
Formula
Payment = principal x monthly rate / (1 - (1 + monthly rate)^-months)The same amortized loan formula is applied to both options.
How to use
Example
Calculator use
Before relying on it
Details
These notes make the assumptions explicit, especially where the same search query can mean slightly different things.
Use the same loan amount for both options unless you intentionally want to compare different fees or amounts financed.
One loan can have the lower payment while the other has lower total interest. Compare both before deciding.
This calculator compares principal and interest. Add financed fees to the loan amount, or compare upfront fees separately.
Source notes
Benchmarks
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions. Benchmark ranges are broad planning heuristics unless this page names a specific source for the range.
Lower monthly payment can help cash flow but may increase total paid.
A shorter or lower-rate loan often saves interest over the full term.
Term length can change total cost even when monthly payment looks attractive.
Calculator accuracy
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Payment = principal x monthly rate / (1 - (1 + monthly rate)^-months)
Loan amount, Option A rate, Option A years, Option B rate, Option B years
Money results are planning estimates. Actual taxes, account terms, rates, fees, timing, local rules, and provider policies can change the real-world result.
June 6, 2026
Toolkit Shelf. Loan Comparison Calculator. Last reviewed June 6, 2026. https://toolkitshelf.com/tools/loan-comparison-calculator
FAQ
Compare both the monthly payment and total interest because a lower payment can still cost more over time.
Longer loans spread payments across more months, giving interest more time to accumulate.
No. Add fees to the loan amount if you want them included in the payment comparison.
Use the side-by-side table to decide whether monthly cash flow or total cost matters more. The cheaper lifetime loan is not always the easiest monthly payment.
Lenders can use verified income, credit profile, reserves, fees, escrow rules, insurance, taxes, underwriting guidelines, and product-specific terms.
Stress test rates, payment timing, fees, taxes, insurance, debt payments, and payoff timing before treating a loan or housing estimate as comfortable.