Loan Comparison Calculator

Written by Great Medico

Updated September 25, 2026 •3 min read

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A finance number becomes easier to trust when you can trace it back to the inputs. Loan Comparison Calculator compares the periodic payments of Loan A and Loan B using each loan’s amount, rate, term, and upfront fees.

What this calculator does

Loan Comparison Calculator compares the periodic payments of Loan A and Loan B using each loan’s amount, rate, term, and upfront fees. The form asks for loan a amount, loan a annual rate, loan a term, loan a upfront fees, loan b amount, loan b annual rate, loan b term, and loan b upfront fees. The result should therefore be read as a calculation from those displayed assumptions, not as live market, lender, tax, or government-program data unless the page explicitly supplies such a feed.

How to use it

Enter Loan A amount, Loan A annual rate, Loan A term, Loan A upfront fees, Loan B amount, Loan B annual rate, Loan B term, and Loan B upfront fees. Keep monetary inputs in one currency; the currency selector formats results and does not convert exchange rates. Enter rates and percentages on the scale shown by the field label; do not silently switch between a decimal and a percent. Keep time values in the period shown on the form so a monthly figure is not accidentally entered as an annual one or vice versa. Before calculating, recheck Loan A amount, Loan A annual rate, Loan A term against the source values you intend to model. If a default value is already filled in, confirm that it matches the scenario you actually want to test rather than assuming the preset is current or personally appropriate.

How the calculation works

Each loan payment is calculated by amortizing loan amount plus the entered upfront fees over its own rate and term. The headline result is the difference between the two estimated monthly payments. This is the calculation method to use when checking the result from Loan Comparison Calculator; values not represented by a visible input should not be inferred as part of the model.

Example

Loan A and Loan B can each use a different amount, rate, term, and upfront fee. The calculator amortizes each financed amount separately and returns the difference between the two modeled monthly payments.

How to interpret the result

A lower payment can come from a lower rate, smaller balance, or longer term. Because term can differ, the loan with the lower payment is not necessarily the loan with the lower total borrowing cost. The result is most informative when you also look at the component values that drove it.

Limitations and notes

The comparison does not fully calculate APR, opportunity cost, tax effects, prepayment, variable rates, or every closing charge. Compare total repayment and the lender’s disclosures before choosing between offers. Recalculate when rates, balances, prices, dates, or policy rules change.