— Loans & Debt
Loan Comparison Calculator
Two offers, three offers — different rates, tenures and fees. See which is genuinely cheaper once everything is counted, not just the lowest advertised rate.
Cheapest offer
Loan B
- Its total cost
- $1,262,611.68
- Saving vs the priciest offer
- $7,889.63
- Its monthly payment
- $21,001.86
- Lowest headline rate
- Loan A (9%)
— Side-by-side comparison
| Offer | Payment | Total interest | Total cost | Fees | APR |
|---|---|---|---|---|---|
| Loan A | $20,758.36 | $245,501.31 | $1,270,501.31 | $25,000 | 10.09% |
| Loan B ✓ | $21,001.86 | $260,111.68 | $1,262,611.68 | $2,500 | 9.61% |
— Total cost compared
Download— How it works
Each offer is amortised to its monthly payment and total interest; fees are added for total cost, and the effective APR is solved from the fee-inclusive cash flow. The verdict ranks by total cost including fees.
The lowest rate is not always the cheapest loan
Lenders compete on the headline interest rate because it is the number borrowers fixate on — but it is only part of the cost. A loan with a slightly higher rate and a small fee can easily beat one with a lower rate and a hefty processing charge, especially on shorter tenures where the fee is spread over fewer payments. The only fair way to compare is on the total cost — every payment plus every fee — and on the effective APR, which folds the fees back into a single rate. This calculator does both, ranks the offers, and names the genuinely cheapest.
Enter each offer’s amount, rate and tenure, add the fees under advanced, and read the verdict and the side-by-side matrix. The cheapest offer is the one with the lowest total cost — which the calculator marks with a tick.
Worked example — two $1,000,000 offers over 5 years: Offer A at 9.0% looks better than Offer B at 9.5% — but A charges a 2.5% fee and B only 0.25%. Once the fees are counted, B’s total cost comes out about $7,900 lower — so the higher-rate loan is actually the cheaper one.
Reading the comparison matrix
The table is the heart of this tool. Each row is an offer; the columns are the figures that matter — the payment, the total interest, the fees, the total cost, and the effective APR. The payment tells you the monthly commitment; the total cost is what you ultimately part with and drives the verdict; the APR lets you compare offers on a single fee-inclusive rate. A loan can win on one column and lose on another, which is exactly why a single headline number misleads.
Watch the gap between the headline rate and the APR: the wider it is, the more the fees are adding. Two loans with the same rate but different APRs differ only in their fees — and the matrix makes that visible at a glance.
When tenures differ — break-even
Comparing total cost is straightforward when the tenures match. When they differ, it needs care: a longer loan has a lower payment but pays more interest overall, while a shorter loan costs less in total but demands more each month. Neither is simply “better” — it depends on what you can afford and how you value cash flow now versus cost later. When two offers have different tenures, the calculator shows the break-even: the point at which the lower-payment offer’s cumulative cost overtakes the other’s.
If you value lower monthly outgoings and can live with paying more in the end, the longer loan may suit you despite costing more; if total cost is all that matters, the shorter one usually wins. The figures here let you make that trade-off with eyes open rather than on the strength of an advertised rate.
— Reader questions
How do I tell which loan is actually cheaper?
By total cost including fees, not the headline rate. Add up every payment plus every charge for each offer and compare — that is what this calculator does, ranking the offers and marking the cheapest. The effective APR, which folds fees into a single rate, is the other fair basis for comparison.
Why can a loan with a higher rate be cheaper?
Because of fees and tenure. A lower rate paired with a large processing fee can cost more overall than a slightly higher rate with a small fee — particularly on shorter loans, where the fee is spread over fewer payments. The calculator counts the fees so the genuinely cheaper offer wins, even if its advertised rate is higher.
What is the effective APR and why does it matter?
The effective APR is the rate that makes the money you actually receive — the loan minus up-front fees — equal the present value of your payments. It expresses rate and fees as one number, so it is the fairest way to rank offers with different fees. The calculator shows it per offer alongside the headline rate.
How should I compare loans with different tenures?
Carefully — a longer tenure means a lower payment but more total interest. Look at both the payment (what you pay monthly) and the total cost (what you pay in the end), and use the break-even figure, which shows when the lower-payment offer’s cumulative cost overtakes the other. The right choice depends on whether monthly affordability or total cost matters more to you.
Can I compare three offers?
Yes. Offers A and B are compared by default; enter an amount for Offer C under the advanced options to add a third. All three appear in the matrix and the cost chart, and the verdict picks the cheapest of them.
Should I factor in prepayment?
If you plan to prepay, yes — it changes the total interest, and by different amounts for different rates and tenures. Enter an extra monthly amount under advanced and it is applied equally to every offer, keeping the comparison fair while reflecting your real repayment plan.