Built and fact-checked by the DocNectar team — see our editorial standards
Key Features
Instant Calculation
Get accurate results in real time with our optimized algorithm.
Mobile Friendly
Fully responsive design. Works on all devices & screen sizes.
Privacy Focused
Your data stays on your device. We don't store any inputs.
100% Free
No hidden costs. This tool is completely free forever.
Comparing two loan offers means more than just comparing interest rates — a lower rate with a longer term can easily cost more in total than a higher rate with a shorter term. This calculator compares two full loan offers side by side, computing the monthly payment and total cost of each, with a full step-by-step solution.
How it works
Enter the loan amount, interest rate, and term for two loan offers. The calculator applies the standard amortization formula to each, finds the monthly payment and total cost over the full term, and reports which option costs less overall.
- Enter loan A — amount ($).
- Enter loan A — interest rate (%).
- Enter loan A — term (years).
- Enter loan B — amount ($).
- Enter loan B — interest rate (%).
- Enter loan B — term (years).
- Click Calculate to see your results.
Examples
A 30-year vs. a 15-year loan
A $300,000 loan at 6.5% over 30 years costs $682,632 in total, while the same amount at 7% over 15 years costs $485,366 — the shorter term wins despite the higher rate, thanks to far less accumulated interest.
Who should use it
- Comparing two mortgage refinance offers with different rates and terms.
- Deciding between a shorter, higher-payment loan term and a longer, lower-payment one.
Industry applications
- Mortgage and consumer lending
- Personal finance planning
Advantages
- Compares monthly payment and total cost for two full loan offers in one step.
- Includes a complete, formula-based step-by-step solution for each loan.
Limitations
- Doesn't account for fees, closing costs, or points that may differ between real loan offers.
Common mistakes to avoid
- Comparing only the interest rate or only the monthly payment, without looking at total cost over the full term.
- Forgetting that a lower monthly payment from a longer term usually means more total interest paid.
Best practices
- Always compare the total cost over the full loan term, not just the monthly payment, when weighing two loan offers.
Tips
- When rates are close, a shorter term is usually the better financial choice if the higher monthly payment is affordable, since it saves substantially on total interest.