Compare two loan scenarios by entering each principal, annual interest rate and repayment term. The calculator estimates fixed monthly payments and total interest using a reducing-balance model, so a lower payment is not automatically the lower-cost option if its term is longer. Fees, insurance, rate changes, taxes and prepayments are excluded. If the principal differs, confirm that both offers finance the same need before comparing their totals. Use lender disclosures for a final cost comparison.
Enter principal, annual rate and term for Loan A.
Enter the same three assumptions for Loan B.
Compare each estimated monthly payment and total interest, then account for fees separately.
Monthly payment: P × r ÷ (1 − (1 + r)⁻ⁿ), where r = annual rate ÷ 12 ÷ 100
Total interest: Sum of monthly interest on the reducing balance
Does this include fees?
No. Processing charges, insurance, taxes and other fees are not included in the fixed-rate payment estimate.
Can the lower monthly payment cost more overall?
Yes. A longer repayment term can reduce each installment but increase total interest. Compare both payment and total cost.