Free Loan Comparison Calculator — Which Loan Costs Less?

Compare two loans side-by-side including rates, fees, and total cost

100% free, no signup
Total cost analysis, not just monthly payment

Compare Loan Options

Compare two different loan scenarios to find the best option for your situation

A

$
%
years
$
pts

B

$
%
years
$
pts
$

Apply the same extra payment to both loans for fair comparison

Comparison Results

B
Recommended: Loan B
$49.05
Monthly Savings
$12,158.89
Total Savings
Better Choice Because
Lower monthly payment and total cost

Loan Comparison Tips

Compare Total Costs

Look beyond monthly payments. Include closing costs, points, and total interest over the loan term.

Consider Your Timeline

If you plan to move or refinance soon, higher upfront costs for lower rates may not pay off.

Calculate Break-Even Point

Determine how long it takes for a loan with higher upfront costs to become more cost-effective.

Smart Loan Shopping

Making the right loan choice can save you thousands. Here's what to consider:

Rate vs. Points Trade-off
Lower rates often come with higher upfront costs. Calculate your break-even point.
Total Cost of Borrowing
Look at APR and total payments, not just monthly amount. Factor in all fees and costs.
Loan Term Impact
Shorter terms mean higher payments but less total interest. Consider your cash flow needs.

Loan Shopping Resources

CFPB Loan Estimate Guide

Understanding your loan estimate form

Mortgage Shopping Guide

How to compare lenders and get the best deal

Points vs Rate Analysis

When buying points makes financial sense

APR vs Interest Rate

Understanding the true cost of borrowing

Frequently Asked Questions

What are points and should I pay them?

Points are prepaid interest where 1 point = 1% of the loan amount. Each point typically reduces your rate by 0.25%. Pay points if you plan to stay in the home long enough to recoup the cost through lower monthly payments.

How do closing costs affect my decision?

Closing costs vary significantly between lenders and loan types. Include all upfront costs in your comparison, not just the interest rate. A loan with a slightly higher rate but lower closing costs might be better for your situation.

Should I choose the loan with the lowest monthly payment?

Not necessarily. A lower monthly payment might come with higher total interest costs over the loan term. Consider your cash flow needs, how long you plan to keep the loan, and total cost of borrowing.

What is the difference between APR and interest rate?

Interest rate is the cost of borrowing the principal. APR includes the interest rate plus other loan costs like origination fees, making it a better tool for comparing loans. Always compare APRs when shopping for loans.

Important Disclaimer

This calculator provides estimates for comparison purposes only. Actual loan terms, rates, closing costs, and fees may vary based on your creditworthiness, loan program, lender requirements, and market conditions. Always obtain official loan estimates from lenders for accurate comparisons. This tool should not replace professional financial advice from qualified mortgage professionals.

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Complete Guide

Disclaimer: This page includes AI-assisted educational content reviewed for general accuracy. It is not personalized financial, tax, or legal advice. Verify numbers with a qualified professional and our editorial standards.

Compare two loan offers side by side — mortgage, auto, personal, or business. See monthly payments, total interest, closing costs, and which option actually costs less. Instant results help you catch when a “lower rate” is more expensive.

What to Compare Beyond the Interest Rate

Points, origination fees, closing costs, and PMI can erase a headline rate win. Enter both Loan Estimates the same day. Walkthrough: how to compare mortgage loans.

When a Higher Monthly Payment Can Still Win

High closing costs on a low-rate loan may take years to break even. If you sell or refinance sooner, lower fees can win. Also compare 15- vs 30-year terms with the mortgage calculator.

Tips for Getting the Best Loan in 2026

Shop three lenders the same day. Negotiate fees. Improve credit and DTI before you apply — see how to improve your credit score.

Key Takeaways

  • Compare total cost, not just rate or payment.
  • Include closing costs and points every time.
  • Match term to how long you will keep the loan.
  • Slightly higher rate + lower fees can win short timelines.

Related Calculators & Guides

Mortgage CalculatorLoan Comparison GuideAPR vs Interest Rate