Loan Comparison Tool
Compare multiple loan offers side by side
📊 Detailed Comparison
Loan Comparison Tool
Make smarter borrowing decisions with comprehensive loan analysis
Launch Calculator →What is the Loan Comparison Tool?
The Loan Comparison Tool is a powerful financial calculator designed to help you compare multiple loan offers side-by-side. Whether you’re shopping for a mortgage, auto loan, personal loan, or any other type of financing, this tool gives you clear insights into which offer will save you the most money over time.
By analyzing monthly payments, total interest costs, upfront fees, and the true cost of each loan, you can make confident, data-driven decisions about your borrowing options.
Key Features
Compare Unlimited Loans
Add as many loan offers as you need to compare. No restrictions on the number of loans you can analyze simultaneously.
Instant Calculations
See results update in real-time as you adjust loan parameters. No need to click calculate or refresh.
Best Deal Detection
The tool automatically identifies and highlights the loan with the lowest total cost, making your decision easier.
Total Cost Analysis
See the complete picture including principal, interest, fees, and the true total cost of each loan over its lifetime.
Savings Calculator
Instantly see how much money you’ll save by choosing the best loan compared to other offers.
Custom Loan Names
Rename each loan to match your lender names or preferences for easy identification and comparison.
How to Use
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Enter Your First Loan Details
Start by filling in the loan amount, interest rate (APR), loan term in years, and any upfront fees for your first loan offer. You can click on the loan name to rename it to your lender’s name.
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Add Additional Loans
Click the “Add Another Loan” button to add more loan offers. Enter the details for each additional loan you want to compare.
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Review the Comparison
Scroll down to see the detailed comparison table showing monthly payments, total interest, total cost, and effective rates for all loans side-by-side.
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Identify the Best Deal
The tool automatically highlights the loan with the lowest total cost with a green “Best Deal” badge. Check the savings section to see how much you’ll save.
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Adjust and Refine
Make adjustments to any loan parameters to see how changes affect your total cost. Remove loans you’re no longer considering using the trash icon.
Understanding the Calculations
Monthly Payment Calculation
The tool uses the standard amortization formula to calculate your monthly payment:
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- • P = Loan principal amount
- • r = Monthly interest rate (annual rate ÷ 12)
- • n = Total number of payments (years × 12)
Key Metrics Explained
Monthly Payment
The fixed amount you’ll pay each month throughout the loan term. This includes both principal and interest.
Total Interest
The total amount you’ll pay in interest charges over the life of the loan, above and beyond the principal amount borrowed.
Total Payment
The sum of all monthly payments you’ll make over the loan term (principal + total interest).
Total Cost
The complete cost including the total payment plus all upfront fees. This is the true out-of-pocket cost and the metric used to determine the best deal.
Effective Rate
The true annual cost of the loan including fees, expressed as a percentage. This gives you a more accurate picture than the stated interest rate alone.
💡 Pro Tips for Comparing Loans
- Don’t just look at the interest rate – upfront fees can significantly impact the total cost
- Consider your monthly budget – a lower payment might be worth a slightly higher total cost
- Compare loans with the same term length for the most accurate comparison
- Factor in any prepayment penalties if you plan to pay off the loan early
- Ask lenders about all fees upfront, including origination fees, application fees, and closing costs
- Check if the interest rate is fixed or variable – variable rates may change over time
- Consider the loan term carefully – longer terms mean lower monthly payments but higher total interest
Frequently Asked Questions
How accurate are these calculations?
The calculations use industry-standard amortization formulas and are highly accurate. However, they assume fixed interest rates and don’t account for potential changes in variable rates or missed payments.
What types of loans can I compare?
You can compare any type of installment loan including mortgages, auto loans, personal loans, student loans, and business loans. The tool works for any loan with a fixed payment schedule.
Should I always choose the loan with the lowest total cost?
Generally yes, but consider your cash flow needs. A loan with a slightly higher total cost but lower monthly payment might be better if you have a tight budget.
What if I plan to pay off the loan early?
If you plan to prepay, the actual cost will be lower than shown. However, some loans have prepayment penalties, so check with your lender and factor those into your comparison.
Can I save my comparisons?
The current version doesn’t save data, but you can take screenshots of your comparisons or write down the loan details for future reference.
Ready to Get Started?
Now that you understand how to use the Loan Comparison Tool, you’re ready to make smarter borrowing decisions. Gather your loan offers and start comparing to find the best deal that could save you thousands of dollars over the life of your loan.