Loan Interest Comparison Calculator
Pit two competing loan quotes directly against each other. Compare monthly payment commitments and total lifetime interest charges across different APRs and term durations.
Common borrowed principal for both options
Annual interest rate for first quote
Repayment period duration for Loan A
Annual interest rate for second quote
Repayment period duration for Loan B
Loan proposal with lowest overall financing expense
How to Use This Calculator
- Enter the loan amount you are shopping for.
- Input the interest rate and term for Loan Proposal A.
- Input the interest rate and term for Loan Proposal B.
- Review side-by-side monthly installments and overall interest difference.
Formula & Calculation Methodology
Computes standard amortization schedules for both candidate loans and subtracts aggregate lifetime interest charges.
Worked Example
$250,000 borrowed: 30-yr at 6.5% ($1,580.17/mo) vs 15-yr at 5.75% ($2,076.02/mo)
Frequently Asked Questions
Why does a 15-year loan save so much interest despite higher monthly payments?↓
By compressing the payoff schedule into half the time, principal is retired much faster, preventing decades of compounding interest accumulation.
Should I choose the lowest monthly payment or the lowest total interest?↓
Choose the lowest monthly payment if you need cash flow flexibility; choose the shorter term if you can comfortably afford payments and want to minimize lifetime debt.
Can I mimic a 15-year loan on a 30-year mortgage?↓
Yes! You can take a 30-year mortgage for safety and voluntarily make extra principal payments each month to pay it off in 15 years with zero penalty.
Do lenders charge penalties for comparing multiple loan offers?↓
Credit scoring models treat all mortgage or auto inquiries made within a 14- to 45-day window as a single inquiry, protecting your score while shopping.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.