Loan Comparison Calculator

Lenders advertise the monthly payment because it is the number people compare, and it is the easiest one to make look good: stretching the same debt over seven years instead of five lowers the payment while increasing the total interest substantially. Comparing total cost removes that illusion. Fees deserve the same scepticism — a headline rate a full point lower can be the more expensive option once a large arrangement fee is counted, which is exactly why regulators require an APR that folds fees into a single comparable figure. Before signing, check one thing this calculator cannot know: whether the lender charges a penalty for early repayment, since that can outweigh a small rate advantage if you expect to clear the loan sooner.

Each monthly payment is P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of payments. Total interest is payment × n − principal, and total cost is that interest plus any upfront fees.

This assumes fixed rates and equal monthly payments over the full term. It does not model variable rates, payment holidays, early-repayment penalties, insurance sold alongside the loan, or the effect of overpaying — any of which can change which offer wins. Fees are treated as paid upfront rather than added to the balance, so if a lender rolls the fee into the loan the true cost is slightly higher than shown.

Borrowing 25,000: a 6.9% five-year offer with no fee costs about 4,632 in interest; a 5.9% five-year offer with a 900 fee costs about 3,940 plus the fee — so the lower rate still wins, but by less than the headline suggests.

1. Enter the amount you want to borrow.
2. Fill in the rate, term and any upfront fees for each offer.
3. Compare the total cost column, not the monthly payment.
4. Check for early-repayment penalties before deciding.

• Choosing the lowest monthly payment without checking the total cost.
• Ignoring arrangement fees when comparing headline rates.
• Comparing offers with different terms as if they were equivalent.
• Overlooking early-repayment penalties.

The Loan Comparison Calculator puts up to three offers side by side, showing the monthly payment, total interest, upfront fees and total cost of each. It picks the genuinely cheapest by total cost, and warns you when the offer with the lowest monthly payment is not the cheapest one.

Anyone choosing between loan, car finance or personal credit offers.

• Compares by total cost, not by the monthly payment lenders advertise.
• Includes upfront fees, where low-rate offers often hide their cost.
• Handles different terms, so a 5-year and a 7-year offer compare fairly.
• Flags explicitly when the cheapest payment is not the cheapest loan.

• Choosing between competing personal loan offers.
• Deciding whether a lower rate justifies an arrangement fee.
• Comparing dealer finance against a bank loan.
• Seeing what a longer term really costs you.