Loans
Loan Comparison Calculator
The lowest monthly payment isn't always the cheapest loan — a longer term lowers the payment but piles on interest. Enter the same amount at two rates and terms to compare both payments, the total interest each charges, and which one costs less over its life.
Loan B costs less overall
$71,014
You'd save this much in total by choosing Loan B.
- Loan A — monthly
- $1,996
- Loan B — monthly
- $1,799
- Loan A — total interest
- $418,528
- Loan B — total interest
- $347,514
- Monthly payment gap
- $197
Difference between the two payments.
Side by side
| Metric | Loan A | Loan B |
|---|---|---|
| Monthly payment | $1,996 | $1,799 |
| Total interest | $418,528 | $347,514 |
| Total paid | $718,528 | $647,514 |
How this calculator works
Each loan's monthly payment fully amortizes the principal over its term at its rate (standard PMT formula). Total paid = payment × number of months; total interest = total paid − principal. The 'cheaper' loan is the one with the lower total paid.
Both loans use the same principal so the comparison is apples-to-apples. Rates are treated as fixed for the full term, with no fees, prepayment, or extra payments — enter APRs to approximate fee differences.
Try an example
Frequently asked questions
How do I compare two loans fairly?
Look past the monthly payment to the total interest and total paid over each loan's full term. A lower payment often just means a longer term, which usually means more interest. Comparing the same amount at each loan's rate and term — as this tool does — shows the true lifetime cost.
Is a lower monthly payment always better?
No. Stretching a loan from 15 to 30 years lowers the payment but can double the interest. A lower payment helps monthly cash flow, but if you can afford the higher one, the shorter, cheaper loan usually wins. This calculator flags which loan costs less overall regardless of payment size.
Should I compare by APR or interest rate?
APR is the fairer comparison because it folds in fees and points, not just the note rate. If one loan has lower fees, enter each loan's APR to capture that. For a note rate with separate upfront fees, use the APR calculator first, then compare the APRs here.
Does this work for any loan type?
Yes — it's a general fixed-rate, fully-amortizing comparison, so it fits mortgages, auto loans, personal loans, and student loans. It assumes level monthly payments and no extra principal. For type-specific costs like a car's taxes and fees, use the dedicated calculator, then compare financing here.
Related calculators
Loan Calculator
Calculate the monthly payment, total interest, and payoff date for any personal, auto, or fixed-rate loan — and see how extra payments shorten it.
APR Calculator
See a loan's true cost. Enter the rate, term, and upfront fees to get the real APR — the number that folds points and closing costs into one annual figure you can compare across offers.
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.
Auto Loan Calculator
Car payment with the real numbers: sales tax, fees, trade-in credit — even negative equity. See the monthly payment and the true total cost.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.