The payment can mislead you
It is tempting to pick whichever loan has the lower monthly payment, but that number alone hides the term. A longer, lower-payment loan frequently costs thousands more in total interest than a shorter, higher-payment one — even at a similar rate. Comparing total cost is the only way to see the real difference.
Using this to negotiate
Getting two real quotes and running them here gives you a concrete number to negotiate with — "Lender A is offering me a total cost of $X, can you match or beat that?" often works better than negotiating on rate alone. See the Loan Calculator for a full amortization schedule on whichever offer you choose.
Frequently asked questions
Should I compare loans by monthly payment or total cost?
Both matter, but total cost (all payments over the full term) is what the loan actually costs you. A lower monthly payment often comes from a longer term, which can mean paying significantly more in total interest — this calculator shows both so you can weigh the trade-off.
Why would two loans for the same amount have different terms?
Lenders often quote different combinations of rate and term. A shorter term usually carries a lower rate but a higher payment; a longer term lowers the payment but raises the rate and total interest. Comparing them side by side reveals which trade-off is worth it for you.
Does this include fees or closing costs?
No — this compares principal and interest only. Ask each lender for their fees (origination, closing costs) and factor those in separately, since they can meaningfully change which offer is actually cheaper.
What if the loan amounts are different between offers?
This tool assumes the same loan amount for both, which is the fairest comparison for the same purchase. If the amounts genuinely differ, compare each loan individually with the Loan Calculator instead.
Last updated: June 2026