Compare estimated payments, total interest, and principal-plus-interest cost for two amortized, declining-balance, or flat-rate loans.
Loan C has the lowest total lifetime cost
Costs $34,766 including fees — saves $849 over Loan B.
Loan B offers the lowest monthly payment
Starts at $579/month for easier monthly cash flow.
| Comparison Metric | Loan A | Loan B | Loan C | Best Advantage |
|---|---|---|---|---|
| Loan Amount | $30,000 | $30,000 | $30,000 | — |
| Term Duration | 60 mos (5.0 yrs) | 60 mos (5.0 yrs) | 48 mos (4.0 yrs) | 48 mos (shortest) |
| Interest Rate | 6.5% | 5.9% | 7.2% | 5.9% lowest |
| Upfront Fees | $300 | $900 | $150 | $150 lowest |
| Monthly Payment | $587 | $579 | $721 | Loan B ($579) |
| Total Interest | $5,219 | $4,715 | $4,616 | $4,616 |
| Total Repayment (P + I) | $35,219 | $34,715 | $34,616 | Principal + interest |
| Total Lifetime Cost (P + I + Fees) | $35,519 | $35,615 | $34,766 | Loan C wins by $849 |
Key Loan Comparison Advice:
Calculation Formula
A borrower needs $35,000 to finance a vehicle and is evaluating 3 competing loan packages from a bank, a credit union, and a dealership:
| Option A (Bank): 5-Year (60 mos) @ 6.25% + $150 fee | $680.78/mo | $5,847 interest | Total: $40,997 |
| Option B (Credit Union): 4-Year (48 mos) @ 5.50% + $0 fee | $813.78/mo | $4,061 interest | Total: $39,061 (Lowest Lifetime Cost) |
| Option C (Dealership): 6-Year (72 mos) @ 4.90% + $1,200 fee | $561.76/mo | $5,447 interest | Total: $41,647 (Lowest Monthly Payment) |
💡 Although Dealership Option C offers the lowest monthly payment ($561.76/mo) and lowest nominal rate (4.90%), Credit Union Option B saves $2,586 in total cash outflow because of the shorter term and zero upfront origination fees.
Enter the principal amount, annual interest rate (or APR), term length, and any upfront lender fees (origination, application, points) for Loan A.
Enter the competing terms for Loan B, and optionally click "Add Loan C" to evaluate a third competing bank or dealer offer simultaneously.
Review the side-by-side comparison table to contrast monthly payments, total interest paid, upfront fees, and total lifetime cost before choosing your financing.
A lower monthly payment often means you are borrowing for a longer term, which drastically increases the total interest you pay. This comparison highlights the full lifetime cost including upfront fees.
A lender offering an interest rate 0.5% lower may charge $1,500 in upfront origination points or processing fees. Including fees reveals which offer is genuinely cheaper over your holding period.
Quickly contrast offers from traditional banks, online lenders, and credit unions. Export your side-by-side analysis directly to CSV or copy a clean text summary for your financial records.
Once you select the best offer, inspect its month-by-month principal breakdown in the Review a single loan amortization schedule.
Comparing home purchase options with property tax, home insurance, and PMI? Use the Estimate full mortgage payment with escrow.
See how investing the monthly savings from a cheaper loan grows over time with the Calculate compound interest growth.
The interest rate is the direct percentage cost of borrowing the principal balance each year. The APR (Annual Percentage Rate) includes both the interest rate and mandatory lender fees (such as origination points, processing fees, and document prep charges). If two loans have identical interest rates but different fees, the loan with higher fees will have a higher APR and cost more overall.
It depends on your current cash flow and financial safety margin. If your monthly budget is tight, a longer loan with lower monthly payments provides safety against unforeseen income drops. However, if your budget allows comfortable higher payments, choosing the shorter term saves thousands of dollars in interest charges and clears your debt much sooner.
Upfront fees increase your immediate borrowing cost. If you plan to pay off or refinance the loan within 2 to 3 years, a low-fee loan with a slightly higher interest rate is often cheaper than paying thousands in upfront points for a lower rate that you will not hold long enough to break even on.
Yes. Any amortized fixed installment loan can be compared directly by entering the borrowed principal, rate, term length, and fees. The underlying mathematical amortization applies equally to car loans, personal loans, home equity loans, and fixed student loans.
In an amortized fixed loan, your monthly payment remains constant each month; early payments consist mostly of interest, while later payments consist mostly of principal. In a declining balance loan (common in commercial lending), the principal is divided evenly across all months and interest is recalculated monthly on the remaining balance, so your monthly payment starts high and decreases over time.
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