How do I compare loan offers?

Enter the loan amount, annual interest rate, and term for each offer. The calculator instantly shows your monthly payment, total interest paid, and total cost for each loan so you can identify the best deal at a glance.

Should I always choose the loan with the lowest monthly payment?

Not necessarily. A lower monthly payment often means a longer term, which means you pay more interest overall. Compare total cost alongside monthly payment. If cash flow is tight, a lower payment may be worth the extra interest; if you can afford it, shorter terms save money.

What is APR and why does it matter for loan comparisons?

APR (Annual Percentage Rate) includes the interest rate plus any fees rolled into the loan. When comparing loans, use APR rather than the stated interest rate to get a true apples-to-apples comparison. A lower interest rate with high fees can be more expensive than a slightly higher rate with no fees.

Does the loan amount have to be the same for all three loans?

No. You can enter different amounts for each loan. This is useful when comparing offers where lenders approved different amounts, or when evaluating whether borrowing more (at a lower rate) makes sense versus borrowing less at a higher rate.

Home › Calculators › Loans › Loan Comparison

Loan Comparison Calculator

Enter up to 3 loan offers and instantly compare monthly payments, total interest, and total cost side by side.

Loan A

Loan Amount

Annual Interest Rate

Loan Term

Loan B

Loan Amount

Annual Interest Rate

Loan Term

Loan C

Loan Amount

Annual Interest Rate

Loan Term

Side-by-Side Comparison

Metric	Loan A	Loan B	Loan C
Enter loan details above to compare.

How Loan Payments Are Calculated

Monthly Payment Formula

M = P × [r(1+r)^n] / [(1+r)^n − 1]

M = monthly payment

P = loan amount

r = monthly rate (APR ÷ 12)

n = total payments

Tips for Comparing Loans

Always use APR (not just the interest rate) — APR includes fees and gives a true comparison.
A shorter term means higher monthly payments but less total interest.
If rates differ, sometimes a higher amount at a lower rate costs less than a smaller amount at a higher rate.
Check for prepayment penalties before choosing a longer term you plan to pay off early.

Frequently Asked Questions

Compare total cost of borrowing, not just the monthly payment. Use APR (Annual Percentage Rate) as the primary comparison metric since it includes fees as well as the interest rate. Also compare the loan term, prepayment penalties, origination fees, and flexibility of payment dates. This calculator shows the monthly payment and total interest for each offer side by side.

The interest rate only reflects the base cost of borrowing. APR includes the interest rate plus fees such as origination fees, broker fees, and points, expressed as an annual percentage. Two loans with the same interest rate but different fees will have different APRs. Under the Truth in Lending Act (TILA), US lenders must disclose the APR, making comparison straightforward.

Yes. Enter the amount, rate, and term for each loan independently. The calculator shows monthly payments and total interest for each. Comparing a 10,000 dollar loan at 8% over 3 years against a 12,000 dollar loan at 6% over 4 years gives you a complete cost picture before deciding which better fits your financial situation.

US personal loan APRs range from around 7-12% for borrowers with excellent credit (750+ FICO) to 25-36% for fair credit borrowers. Marketplace lenders like LightStream and SoFi serve prime borrowers. Comparing offers from at least three lenders on sites like LendingTree or NerdWallet is recommended before accepting any personal loan offer.

Free comparison sites include LendingTree, Bankrate, and NerdWallet, which show multiple lender offers with a soft credit inquiry. Credit unions often offer lower rates than banks for the same borrower profile. Your existing bank may offer a relationship discount. Always get at least three quotes and check for prepayment penalties before signing.

Focus on the APR (Annual Percentage Rate), which under UK Consumer Credit Act regulations must be quoted by all lenders and includes interest and mandatory fees. Also consider the total amount repayable, loan term, flexibility for overpayments, and any early repayment charges. This calculator lets you compare monthly payments and total interest side by side.

The FCA requires all UK consumer lenders to quote a Representative APR in advertisements, allowing like-for-like comparison. The representative APR must be available to at least 51% of successful applicants. Your actual APR may differ based on your credit score. The total amount repayable shown in a loan agreement is the single most useful number for comparison.

UK personal loan APRs typically range from 6-9% for borrowers with excellent credit taking amounts of 7,500-25,000 pounds (where the best rates apply) to 20-40% for smaller or riskier loans. Rates below 3,000 pounds or above 25,000 pounds often carry higher rates. Compare on MoneySavingExpert or Moneyfacts for live market rates.

MoneySavingExpert Loans Eligibility Checker and Moneyfacts allow soft-search comparisons that do not affect your credit score. Your bank or building society may offer existing-customer rates. Credit unions offer competitive rates, especially for smaller loan amounts. Always compare at least three offers before accepting a loan.

Yes. Enter any combination of loan amount, rate, and term for each loan independently. The calculator shows exact monthly payments and total interest for each scenario, making it easy to evaluate the full cost difference between a lower-rate longer-term loan and a higher-rate shorter-term one.

Compare using the comparison rate, which is the legally required Australian metric that combines the interest rate with most fees into a single annual percentage rate. The comparison rate is calculated on a 150,000 dollar loan over 25 years by law, so it is more meaningful for home loans than small personal loans. Also check total repayable amount and early repayment fees.

The comparison rate is a standardised annual rate required by the National Consumer Credit Protection Act that includes the interest rate plus most fees (establishment fee, monthly fees) but excludes government charges and some optional fees. It provides a more accurate cost comparison than the advertised interest rate alone. Always compare comparison rates when choosing between Australian loan products.

Secured personal loans in Australia typically range from 6-12% per annum comparison rate. Unsecured personal loans typically range from 8-20% comparison rate depending on credit score and lender. Non-bank lenders may charge higher rates. Compare on Canstar or RateCity to see live market rates from multiple lenders and find offers for your credit profile.

Canstar and RateCity are the leading Australian loan comparison sites. They allow you to see rates from major banks and non-bank lenders, including credit unions. The ASIC Moneysmart comparison rate calculator helps you understand the true cost of different offers. Apply to at least two lenders to ensure you are getting competitive terms.

Yes. Enter the loan amount, rate (as comparison rate for accuracy), and term for each loan independently. The calculator shows monthly repayments and total interest for each option, making it straightforward to decide whether a lower rate is worth a longer term or a higher repayment.

Compare using the Annual Percentage Rate (APR), which under the federal Cost of Borrowing Regulations must include the interest rate and all mandatory fees. Also examine the total cost of borrowing disclosed in the loan agreement, prepayment privileges, and whether the rate is fixed or variable. This calculator shows monthly payments and total interest for each loan side by side.

Canadian lenders are required by the Cost of Borrowing Regulations to disclose APR in standardised format, making comparison across lenders straightforward. APR captures both the interest rate and compulsory fees. Be aware that Canadian mortgages use semi-annual compounding, which means the effective rate differs from the quoted rate; this calculator handles that automatically.

Personal loan APRs in Canada range from around 7-12% for prime borrowers at major banks and credit unions to 20-46.99% at high-cost lenders. Most Canadian banks offer personal loans in the 7-19% range. Credit unions often provide competitive rates, especially for members with good standing. Compare on Ratehub or Loans Canada for current market rates.

Ratehub.ca and Loans Canada aggregate offers from multiple lenders and allow comparison with a soft credit check. Your bank and credit union are also worth approaching directly. The FCAC loan comparison tool on the government website provides guidance on what to look for. Consider co-signers or secured loan options if your credit score limits available rates.

Yes. Enter any amount, rate, and term for each loan independently to see monthly payments and total interest. This is useful when comparing, for example, a larger personal loan at a bank rate against a smaller amount from a credit union at a lower rate, helping you decide which total cost better matches your budget.

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