How the loan comparison calculator works
Enter each offer's loan amount, interest rate, term length, and any fees — origination charges, closing costs, or points. The calculator works out the monthly payment and total repayment for each, then ranks the offers by true cost.
A lower rate isn't always the winner. Fees and longer terms can quietly inflate the total you repay, which is why comparing monthly payment alone can mislead you.
Worked example: lower rate vs lower payment
Borrow $12,000 and compare two offers: Offer A charges 9% over 36 months with no fee; Offer B charges 7.5% over 60 months with a 3% origination fee. A costs less overall; B has the smaller monthly payment.
This is the classic trade-off: a shorter term at a higher rate can still beat a longer term at a lower one. Choose based on whether total cost or monthly comfort matters more.
What to watch out for
Watch for fees that aren't in the advertised rate — origination, application, or prepayment penalties. A loan with no fee but a slightly higher rate often beats a low rate loaded with charges.
Also confirm whether the rate is fixed or variable. A variable rate can rise after the first year, making today's comparison outdated. Treat results as estimates, not financial advice.
Frequently asked questions
What matters more: rate or monthly payment?
Both matter, but total cost matters most. A low monthly payment spread over more years usually means paying much more interest overall. Compare the total repayment first, then check whether the monthly payment fits your budget comfortably.
Should I compare APR or interest rate?
Compare APR — it folds most fees into a single yearly figure, so offers with different fee structures can be weighed fairly. The plain interest rate ignores fees, which is exactly how a cheap rate can hide an expensive loan.
How many offers should I compare?
Three to five serious offers is the sweet spot. Fewer and you might miss a better deal; more and the details blur together. Get at least one quote from a bank, one from a credit union, and one from an online lender.
Do loan comparisons affect my credit score?
Shopping around is expected — multiple applications for the same loan type within a 14 to 45 day window usually count as a single inquiry. Use the calculator to narrow your list first, then apply to your finalists in one focused round.