Loan Comparison Calculator

Compare Loans Based on Payments and Interest

Input Fields

Loan 1 Amount (P₁)

P1

$

Enter the amount for Loan 1

Loan 1 Annual Interest Rate (r₁)

r1

%

Enter the annual interest rate for Loan 1

Loan 1 Term (years) (n₁)

n1

years

Enter the term in years for Loan 1

Loan 2 Amount (P₂)

P2

$

Enter the amount for Loan 2

Loan 2 Annual Interest Rate (r₂)

r2

%

Enter the annual interest rate for Loan 2

Loan 2 Term (years) (n₂)

n2

years

Enter the term in years for Loan 2

CalculateReset

Calculate automaticallyIf enabled, the result will update automatically when you change any value.

Your Results

Loan 1 Monthly Payment

Loan 1 Total Payment

Loan 1 Total Interest

Loan 2 Monthly Payment

Loan 2 Total Payment

Loan 2 Total Interest

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Loan Comparison Formulas

\[ \text{Monthly Payment} = \frac{P \times r}{1 – (1 + r)^{-n}} \] \[ \text{Total Payment} = \text{Monthly Payment} \times n \] \[ \text{Total Interest} = \text{Total Payment} – P \]

Where:

• $$P$$ = Loan principal (initial loan amount)
• $$r$$ = Monthly interest rate (annual rate divided by 12)
• $$n$$ = Total number of monthly payments
• $$Monthly Payment$$ = Fixed monthly loan payment
• $$Total Payment$$ = Sum of all monthly payments
• $$Total Interest$$ = Total interest paid over the life of the loan

The Loan Comparison Calculator allows you to evaluate multiple loan options side-by-side, highlighting differences in monthly payments, total cost, and total interest paid. It helps you make smarter borrowing decisions by understanding the real cost of different loans.