Finance and Business
Loan Comparison Calculator
Loan Comparison Calculator compare two fixed-rate amortizing loans by monthly payment, upfront fees, interest, total cost, and break-even fee recovery.
Finance and Business
Loan Comparison Calculator
Compare two fixed-rate amortizing loans by monthly payment, upfront fees, interest, total cost, and break-even fee recovery.
Formula
Payment = principal x monthly rate / (1 - (1 + monthly rate)^-months); total cost = payments + upfront fees.
About the Loan Comparison Calculator
Compare two fixed-rate amortizing loans by monthly payment, upfront fees, interest, total cost, and break-even fee recovery.
How the Loan Comparison Calculator Works
Each offer is amortized independently over its own rate and term, after which fees are added and the payment and lifetime-cost differences are reported.
Formula
Payment = principal x monthly rate / (1 - (1 + monthly rate)^-months); total cost = payments + upfront fees.
The calculation runs in your browser. Values are validated for required ranges, compatible units, and method-specific restrictions before results are displayed.
Required Inputs
- Loan amount (required).
- Loan A annual rate (required) - enter in %.
- Loan A term (required) - enter in years.
- Loan A upfront fees (required).
- Loan B annual rate (required) - enter in %.
- Loan B term (required) - enter in years.
- Loan B upfront fees (required).
Results Reported
The result panel reports the final answer and the intermediate quantities needed to check the calculation:
- Loan A monthly payment (currency)
- Loan B monthly payment (currency)
- Loan A total cost (currency)
- Loan B total cost (currency)
- Loan B minus Loan A lifetime cost (currency)
- Lower total-cost offer
Loan Comparison Calculator Example
Select Example Data in the calculator to load this reproducible input set:
| Input | Example value |
|---|---|
| Loan amount | 250000 |
| Loan A annual rate | 6.25 % |
| Loan A term | 30 years |
| Loan A upfront fees | 2500 |
| Loan B annual rate | 5.75 % |
| Loan B term | 20 years |
| Loan B upfront fees | 5000 |
How to Use the Calculator
- Confirm that the calculator title and formula match the quantity you need.
- Enter every required value using the unit shown with its field.
- Select Example Data to inspect a valid input set, or enter your own values and select Calculate.
- Review all reported values and the displayed formula before using the answer.
- Use Copy Result or Download CSV when you need a reusable record.
Accuracy and Limitations
Compare the same principal and include all lender costs. Taxes, insurance, prepayment, opportunity cost, variable rates, and the time value of upfront fees are not modeled.
Keep units consistent, use measurements that represent the actual situation, retain full precision during the calculation, and round only the final answer. Professional decisions may require current official rules, field measurements, laboratory methods, or specialist review.
Frequently Asked Questions
What does the Loan Comparison Calculator calculate?
Compare two fixed-rate amortizing loans by monthly payment, upfront fees, interest, total cost, and break-even fee recovery.
Which formula does the Loan Comparison Calculator use?
Payment = principal x monthly rate / (1 - (1 + monthly rate)^-months); total cost = payments + upfront fees. Each offer is amortized independently over its own rate and term, after which fees are added and the payment and lifetime-cost differences are reported.
What should I check before using the Loan Comparison Calculator result?
Compare the same principal and include all lender costs. Taxes, insurance, prepayment, opportunity cost, variable rates, and the time value of upfront fees are not modeled.