Compare two loan offers head-to-head. Enter the amount, rate, and term for each option to see which one costs less in monthly payments, total interest, and overall cost. Perfect for comparing mortgage offers, auto loans, or refinancing options.
Comparing loan offers is one of the most common — and most consequential — personal finance exercises. Two loans for the same amount can produce dramatically different lifetime costs depending on their rate and term combinations. A $250,000 mortgage at 6.5% over 30 years costs nearly twice as much in total interest as the same loan at 6.5% over 15 years. A 0.5% lower rate over 30 years saves tens of thousands of dollars. Knowing how to compare loans precisely makes the difference between an informed choice and an expensive default.
The relevant comparison isn't just monthly payment. A shorter-term loan has higher monthly payments but dramatically lower total cost. A lower-rate loan with higher fees may end up more expensive than a slightly higher-rate loan with no fees. The "best" loan depends on your specific situation: cash flow constraints, time horizon (will you pay off early?), tax situation, and risk tolerance.
This calculator compares two loan options on the metrics that actually matter: monthly payment, total interest paid, and lifetime cost. Use it for: comparing mortgage offers from different lenders, evaluating 15-year vs. 30-year mortgage options, choosing between auto loan terms, comparing personal loan structures, deciding whether refinancing makes sense. For the most complete comparison, also factor in APR (which includes fees) and your expected holding period (if you might pay off early, the longer-term loan's higher lifetime cost may not actually accrue).
Two mortgage offers, both $400K over 30 years. Offer A: 6.5%. Offer B: 6.125%. Loan A monthly: $2,528 Loan B monthly: $2,431 Monthly savings with B: $97 Lifetime interest savings: $35,100 The 0.375% rate difference saves over $35,000 in lifetime interest. Always shop multiple lenders for any large loan — even small rate differences compound substantially.
$350K mortgage. 30-year at 6.5% vs. 15-year at 5.75% (15-year rates typically lower). 30-year: Monthly: $2,213 Total interest: $446,500 15-year: Monthly: $2,905 Total interest: $172,900 Monthly cost of choosing 15-year: $692 more per month Lifetime interest savings: $273,600 For households that can afford the extra $692/month, 15-year produces enormous lifetime savings. For households that can't, the 30-year is the only viable choice. Many planners suggest: take the 30-year for flexibility, but make voluntary extra principal payments to mimic 15-year payoff.
$25,000 auto loan at 7%. 36 months vs. 60 months vs. 72 months. 36 months: $772/mo, total interest $2,800 60 months: $495/mo, total interest $4,700 72 months: $426/mo, total interest $5,700 Longer terms reduce monthly payment substantially but add 70% more interest. For most buyers, 48-60 months is a reasonable trade-off — short enough to limit interest, long enough to keep payments manageable. 72+ month auto loans typically mean buying more car than you can afford.
Use this calculator whenever you're evaluating multiple loan offers or considering whether to refinance. It's the fastest way to see which option costs less in total dollars across its life.
For mortgage shopping, this calculator complements the mortgage-payment, mortgage-refinance, APR, and mortgage-points calculators. Use it as the head-to-head comparison tool; use the others for specific aspects (refinance break-even, APR calculation, points evaluation).
For auto loan decisions, the calculator helps avoid the common trap of stretching to a longer term just to lower the monthly payment. Sometimes a longer term is necessary; sometimes it's the difference between affording the car and not. But always know the lifetime cost difference before defaulting to "as long as possible."
For personal loan comparisons across providers, both rate and term matter. Lower-rate longer-term loans can cost more than higher-rate shorter-term loans. Always compare lifetime cost, not just monthly.
Pair this with the mortgage-payment calculator (the underlying amortization math), the APR calculator (for fee-aware rate comparison), the mortgage-refinance calculator (for the refinance-specific analysis), the auto-loan calculator (auto-specific scenarios), and the personal-loan calculator (personal loan specifics).
Important comparison framework:
1. **Monthly payment** matters for affordability. Can you make the payment without strain? If not, the lifetime cost analysis is moot — you can't afford the lower-monthly option.
2. **Total interest** matters for lifetime cost. After affording the payment, the loan with less total interest is the better financial deal.
3. **Total of payments** = loan amount + total interest. This is the absolute lifetime dollar cost.
4. **APR** matters when comparing loans with different fees. Two loans at the same rate but different origination fees have different APRs. Use APR for fairest comparison.
5. **Expected holding period** matters when fees are high. If you might refinance or sell within a few years, the high-fee/low-rate loan may not pay off vs. the low-fee/higher-rate alternative.
For refinance decisions specifically: NEVER look only at monthly payment. Always check the lifetime cost including the term reset. Refinancing a 25-year-remaining loan into a new 30-year loan often produces lower monthly payment but higher lifetime cost. To preserve interest savings, refinance into a shorter term (or make voluntary extra payments on the longer-term loan to match a shorter payoff timeline).
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Loan A Payment
$1,580
Loan B Payment
$2,076
Winner
Loan B
Total Savings
$195,177
| Year | Loan A Balance | Loan A Interest | Loan B Balance | Loan B Interest |
|---|---|---|---|---|
| 1 | $247,205.69 | $16,167.73 | $239,180.51 | $14,092.81 |
| 2 | $244,224.23 | $15,980.59 | $227,722.24 | $13,454.03 |
| 3 | $241,043.10 | $15,780.91 | $215,587.48 | $12,777.54 |
| 4 | $237,648.93 | $15,567.87 | $202,736.28 | $12,061.11 |
| 5 | $234,027.44 | $15,340.55 | $189,126.35 | $11,302.37 |
| 6 | $230,163.42 | $15,098.02 | $174,712.89 | $10,498.84 |
| 7 | $226,040.61 | $14,839.23 | $159,448.47 | $9,647.88 |
| 8 | $221,641.69 | $14,563.12 | $143,282.83 | $8,746.67 |
| 9 | $216,948.17 | $14,268.52 | $126,162.78 | $7,792.25 |
| 10 | $211,940.32 | $13,954.18 | $108,031.96 | $6,781.49 |
| 11 | $206,597.07 | $13,618.80 | $88,830.71 | $5,711.05 |
| 12 | $200,895.99 | $13,260.95 | $68,495.81 | $4,577.41 |