Compare monthly payments, interest rates, repayment terms, upfront finance charges, estimated APR and total borrowing costs for two fixed-rate loan scenarios.
A lower payment can come from a lower rate, a longer term, or both. Compare the complete estimated cost of each loan option.
See the estimated remaining balance and cumulative interest at the end of each year.
| Year | Loan A Balance | Loan A Interest Paid | Loan B Balance | Loan B Interest Paid |
|---|
Monthly payment is only one part of a loan comparison. Interest rate, repayment term and upfront charges can all change the total amount paid.
With the amount and repayment term unchanged, a lower interest rate generally reduces both the monthly payment and total interest.
Extending repayment over more months can reduce the monthly payment, but it may also cause interest to be paid for a longer period.
Finance charges can increase the effective cost of borrowing even when they do not change the stated interest rate or scheduled payment.
APR provides an annualized way to look at the interest rate together with certain finance charges. This calculator estimates APR using net loan proceeds and the scheduled payment stream.
For this calculator, estimated borrowing cost is the total scheduled payments minus the net proceeds received after the entered upfront charges.
Loans with different principal amounts can still be compared, but the results are generally easiest to interpret when both options provide the same amount of financing.
Useful comparison points include loan amount, monthly payment, interest rate, APR, repayment term, upfront charges, total interest and estimated total borrowing cost.
No. A longer repayment term can lower the monthly payment while increasing the amount of interest paid over the life of the loan.
Not necessarily. Fees and repayment term can also affect the overall cost, so it can be useful to compare more than the stated rate alone.
The interest rate is used to calculate interest on the loan principal. Estimated APR also reflects the entered upfront finance charges by comparing the payment stream with net proceeds.
This calculator assumes the entered charges reduce the proceeds received, while scheduled payments remain based on the full stated loan amount.
Yes. Comparing different repayment terms helps show how a shorter or longer term can change monthly payment and total interest.
Yes, although comparisons are generally easier to interpret when both loans provide the same principal amount.
Lenders may use different payment dates, fee treatment, rounding, daily-interest calculations, irregular payment periods and other contract-specific methods.
No. It is an educational estimate based on the inputs entered. Official disclosures can depend on transaction-specific rules regarding which fees and finance charges are included.