Loan Comparison Calculator
Compare up to 4 loan offers side-by-side
Monthly Payment Comparison
| Metric | Loan 1 | Loan 2 |
|---|---|---|
| Loan Amount | $250,000 | $250,000 |
| Interest Rate | 7.5% | 6.8% |
| Term | 15 years | 15 years |
| Monthly Payment | $2,317.53 | $2,219.21Best |
| Total Interest | $167,156 | $149,458 |
| Total Payments | $417,156 | $399,458 |
How to Use This Calculator (The Right Way)
You just got a pre-approval letter from your credit union, and the dealership or a new online lender is about to pitch you their financing. Here's how to see who's really giving you the better deal.
Enter Your "Baseline" Offer
Put in your pre-approval or current best offer as Loan 1. This is the rate to beat. Make sure you use the APR (not just the interest rate) if there are origination fees involved.
Add the Competing Offers
Add up to 3 more loan offers. Notice how lenders often try to stretch the loan term (like pushing you from 60 to 84 months) to make the monthly payment look artificially low.
Look at the Winner Card
Toggle between "Lowest Monthly Payment" and "Lowest Total Interest" at the top of the calculator. The winner card immediately cuts through the math to show you exactly how much cash you're saving over the worst option.
The Problem with "Best Loan" Lists
If you're shopping for loans, you've likely seen "top 10" lists on major comparison websites. Here's what they usually bury in the fine print: most of those sites are lead-generation marketplaces.
When you enter your information to "check your rates" on aggregator sites, they often earn a commission (sometimes $50 to $200+) for selling your lead to lenders.
Because of this "pay-to-play" model, the lenders featured at the top of a comparison table aren't always the ones offering the mathematically best rate — they are often the ones paying the highest affiliate commission to the website.
Our stance: We don't sell your data, and we don't earn commissions from lenders. Our loan comparison calculator runs entirely in your browser. We never see your loan amounts, rates, or personal information. That's the difference between a financial tool and a sales funnel.
How to protect yourself:
- Compare results across 3 or more different sites (as recommended by the CFPB).
- Once you spot a good rate, go directly to the lender's official website to verify it.
- Look for the required "affiliate disclosure" at the top of comparison articles. If they get paid when you click, take their rankings with a grain of salt.
The Rate Shopping Credit Score Myth
The number one fear we see on personal finance forums is that applying for multiple loans will "destroy" your credit score. That is largely a myth, and letting that fear stop you from rate shopping can cost you thousands.
The "Rate Shopping Window"
Credit scoring models like FICO know you need to compare offers. For mortgages, auto loans, and student loans, they group all credit inquiries made within a specific window (typically 14 to 45 days) and treat them as one single hard inquiry.
The Math Overrides the Dip
A single hard inquiry might drop your score by about 5 points temporarily. But securing a 6.0% rate instead of a 6.5% rate on a $30,000 auto loan saves you roughly $420 in interest over 5 years. Your score will recover in a few months; you'll keep that $420 forever.
Critical Exception: Personal Loans & Credit Cards
The rate shopping window does not apply to personal loans or credit cards. Every time you submit a hard application for a personal loan, it counts as a separate inquiry. When shopping for personal loans, only use lenders that offer "pre-qualification" with a soft credit pull (which never impacts your score) until you are ready to sign the final paperwork.
APR vs. Interest Rate: The Number That Actually Matters
If you're comparing a personal loan or a mortgage, never just compare the interest rate. The interest rate is simply the "base price." The APR (Annual Percentage Rate) is the "out-the-door price" because it includes mandatory upfront fees.
Real-World Scenario: Two $18,000 Personal Loans (60 Months)
The catch: With Loan B, the lender subtracts the $900 origination fee before they send you the money. You only get $17,100 in your bank account, but you still pay 12.99% interest on the full $18,000.
By federal law (the Truth in Lending Act), lenders must disclose the APR. If a lender tries to hide the APR and only talks about the monthly payment or interest rate, take your business elsewhere.
The Dealer Finance Reserve: Why Dealership Rates Are Inflated
If you're comparing auto loans, you need to understand how the dealership's Finance & Insurance (F&I) office actually makes money. In many cases, it's through a legal practice called a "dealer markup" or "dealer reserve."
When you apply for a loan at a car dealership, they send your application to their partner banks. The bank might approve you at a rate of 5.4% (this is called the "buy rate").
However, the dealer is usually not required to show you that buy rate. Instead, they mark up the interest rate by 1% to 2.5% and offer you a "sell rate" of 7.4%. The dealership pockets the difference between the two rates as pure profit. On a $35,000 loan over 60 months, a 2% markup costs you an extra $1,850 in hidden interest.
FTC Crackdown (2026)
The Federal Trade Commission has been aggressively pursuing deceptive auto financing practices. In March 2026, the FTC issued warning letters to 97 dealership groups regarding illegal practices, such as conditioning advertised vehicle prices on using the dealer's inflated financing.
How to beat the markup:
Get a pre-approved loan from a bank or credit union before you walk into the dealership. Enter your pre-approval into our calculator as "Loan 1". Tell the dealer they can have your financing business if they can beat that rate. Sometimes they can—especially if the manufacturer is offering subsidized rates like 0% or 1.9%—but if they can't, you simply use your outside loan.
Front-Loaded Interest: Why Extending Your Term is So Expensive
When comparing a 60-month auto loan to an 84-month loan, the 84-month option doesn't just charge you 24 extra months of interest. It drastically slows down how fast you pay off the actual car. This happens because of loan amortization math.
How Amortization Works
Interest is calculated every month based on your remaining principal balance. In the first year of a loan, your balance is at its highest, meaning the interest charge takes up the majority of your monthly payment. You're paying the lender, but barely putting a dent in what you owe.
On a 30-year mortgage, it typically takes until year 18 or 19 before your fixed monthly payment finally goes mostly toward principal.
The Refinance Trap: If you are 5 years into a 30-year mortgage and you refinance back into a new 30-year term, you reset the clock. You go right back to the front-loaded interest phase, effectively throwing away the progress you made. Always compare the total interest cost of refinancing, not just the monthly payment relief.
The Debt Consolidation Reality Check
One of the most common reasons people use our loan comparison calculator is to see if a personal loan makes sense to consolidate credit card debt. But debt consolidation is a math problem with a behavior problem attached.
The Behavioral Trap
When you use a personal loan to pay off $15,000 in credit cards, your credit card balances drop to zero. Psychologically, this feels like you are "debt-free." But you just moved the debt; you didn't eliminate it.
If you haven't fixed the spending habits that caused the debt, having empty credit cards is dangerous. Many people start using the cards again within 6 months. Now they have a $15,000 personal loan payment plus new credit card payments, doubling their debt burden.
When Consolidation Actually Works:
- You stop using the cards: You cut up the credit cards or lock them away so you can't accumulate new debt.
- The APR difference is massive: Going from a 24% credit card to a 9% personal loan is mathematically sound.
- You account for the fees: If a consolidation loan has an 8% origination fee, you have to borrow more just to cover the fee, wiping out a chunk of your interest savings. Ensure you compare the true APR.
Loan Comparison FAQ
Common questions about comparing loan offers, credit score impacts, and avoiding lender traps.
Related Financial Calculators
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Mortgage Calculator
Calculate mortgage payments including taxes, insurance, and PMI.
Auto Loan Calculator
Calculate car payments with trade-in equity, sales tax, and affordability limits.
Refinance Calculator
Compare your current mortgage with a new rate to find monthly savings.
Authoritative Sources & Data References
The research and recommendations on this page are grounded in data and guidance from official U.S. regulatory bodies and major credit bureaus.
What is the difference between a mortgage interest rate and an APR?
Consumer Financial Protection Bureau (CFPB)
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