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Loan rate comparison calculator
Compare three fixed-rate loan offers by monthly payment, total repayments, interest, upfront fees, estimated borrowing cost, savings and fee break-even timing.
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No regional currency, unit or language profile is applied. This choice does not convert values or change formulas, results, routes or legal guidance.
Compare three fixed-rate offers using the same principal. Each offer can have its own rate, term and upfront fee.
Loan offer comparison
Offer C has the lowest estimated borrowing costLowest monthly payment: Offer B · Maximum cost saving: $92,749.81 (35.62%)| Offer | Monthly payment | Total repayments | Total interest | Fee | Estimated borrowing cost | Total cash out |
|---|---|---|---|---|---|---|
| Offer A | $1,938.25 | $465,179.36 | $215,179.36 | $1,500.00 | $216,679.36 | $466,679.36 |
| Offer B · lowest payment | $1,688.02 | $506,405.37 | $256,405.37 | $4,000.00 | $260,405.37 | $510,405.37 |
| Offer C · lowest cost | $2,317.53 | $417,155.56 | $167,155.56 | $500.00 | $167,655.56 | $417,655.56 |
Fee break-even comparisons
- Offer A versus Offer B: estimated cost ranking changes around month 28
- Offer A versus Offer C: estimated cost ranking changes around month 11
- Offer B versus Offer C: estimated cost ranking changes around month 20
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Verification and calculation details
- Purpose
- Loan rate comparison calculator
- Variables and units
- Use the labelled fields and units shown in the calculator. Results use those units unless a conversion is stated.
- Formula and method
- The exact formula and worked example are shown below. Deterministic formula executed locally in the browser.
- Assumptions
- Only entered values and stated assumptions are included. Local fees, rules and professional requirements are excluded unless explicitly shown.
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- 1.0.0
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- Release 63 · source
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How this calculator works
For each offer, monthly payment uses P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with P as principal, r as annual rate ÷ 1,200 and n as months; zero-rate payment is P ÷ n. Estimated borrowing cost = total interest + upfront fee.
Variables and inputs
- Loan amount
- Required numeric input. greater than zero; no more than 1 billion currency units.
- Annual interest rates
- Required numeric input. three rates that are either 0% or from 0.01% to 100%; nominal annual rates divided monthly.
- Loan terms
- Required numeric input. three whole-number terms from 1 to 600 months; end-of-month repayment schedule.
- Upfront fees
- Required numeric input. three non-negative fees; fees are paid separately rather than financed.
How to interpret the result
The calculator returns periodic payment for every offer, total repayments and total interest for every offer, upfront fee, estimated borrowing cost and total cash out for every offer, lowest-payment and lowest-cost results including ties, absolute and percentage savings between the highest and lowest borrowing costs, pairwise fee break-even status and month where applicable. Read each output against the assumptions you entered, compare alternatives one variable at a time, and use the result as an estimate rather than a promise.
Common mistakes to avoid
- Mixing units or entering a rate as a decimal when the field requests a percentage.
- Rounding intermediate values instead of the final displayed result.
- Leaving out a cost, timing rule or local requirement listed in the assumptions below.
Practical uses
Use the loan rate comparison calculator to check a real scenario, compare a changed assumption and explain the arithmetic before relying on a quote, specification or decision.
Worked example
For the same 250,000 principal, compare 7% for 240 months with a 1,500 fee, 6.5% for 300 months with a 4,000 fee, and 7.5% for 180 months with a 500 fee. The calculator evaluates each monthly payment and fee-inclusive borrowing cost separately, then identifies the lowest payment and lowest cost without calling either offer universally best.
Assumptions and limitations
- all offers use the same principal
- rates are fixed nominal annual percentages divided into twelve monthly periods
- payments occur at the end of each month
- upfront fees are paid separately at origination and are not added to principal
- full calculation precision is retained before display formatting
- lowest monthly payment is not necessarily lowest total cost
- taxes, insurance, regulatory charges, optional products and lender-specific charges not entered as an upfront fee are excluded
- variable rates, early repayment, penalties, refinancing and payment-timing differences are not modeled
- results are mathematical estimates from entered terms, not regulated financial advice, approval guidance or a claim that one offer is universally best
Important notes
Results are estimates based on the values entered. Confirm rates, prices, units and professional requirements that apply in your location. Review the Answer Atlas Calculation Standard and corrections policy for formula, privacy and correction rules.
Frequently asked questions
Why can the lowest payment cost more overall?
A longer term can reduce the monthly payment while increasing the number of interest-bearing payments, so total interest and total borrowing cost may be higher.
How are upfront fees compared?
Each entered upfront fee is added to that offer's total interest to estimate borrowing cost. The fee is treated as paid separately and is not financed into principal.
What does the break-even result mean?
It estimates the first payment month when the initial fee-inclusive cumulative borrowing-cost ranking between two offers ties or reverses. It does not predict refinancing, early repayment or changing rates.
Does the calculator choose the best loan?
No. It identifies the lowest entered payment and estimated cost under the stated assumptions. Suitability, approval, risk and regulated advice remain outside the calculation.