Loan Comparison Calculator – Find the Cheapest Loan Offer
You rarely get just one loan quote. A bank offers one rate with no fee, an online lender a lower rate with an origination fee, and a dealer a flat rate. This loan comparison calculator puts two to four offers side by side for the same amount. It shows each offer's monthly payment, total cost of borrowing and fee-inclusive APR, and the month where the cheapest offer changes.
Rate, payment and total cost can each pick a different winner
The lowest interest rate, the lowest monthly payment and the lowest total cost are often three different offers. A longer term lowers the payment but charges interest for more months. A low rate can hide a large upfront fee. The only figure that answers "which loan is cheapest?" is the total cost of borrowing: everything you pay, at signing, every month and at payoff, minus the cash you actually receive.
For example, $25,000 over 36 months at 5.9% costs $2,338.98 in interest with a payment of $759.42. Stretching it to 72 months at 6.9% cuts the payment to $425.03, but the interest grows to $5,601.85.
Points, upfront fees and the break-even month
An upfront fee is paid on day one, while the lower rate it buys saves money month by month. So a low-rate, high-fee loan starts behind and catches up. The month where it catches up is the break-even month. If you'll refinance, sell or repay before then, the no-fee offer is cheaper.
Take a $300,000 mortgage over 30 years. Offer A is 7.00% with no fees, a payment of $1,995.91. Offer B is 6.50% with $6,000 in points, a payment of $1,896.20. Over the full term B is cheaper by $29,893.22. But close both loans after 47 months and A is still ahead: $80,554.50 against $80,649.90. From month 48, B wins. The rule of thumb "fee ÷ monthly saving" says $6,000 ÷ $99.70 ≈ 60 months, which overstates the break-even because B's balance also falls faster.
Flat rate vs reducing-balance rate
A reducing-balance rate charges interest only on what you still owe. A flat rate charges interest on the full original amount for the whole term, even as you repay it. That makes a flat rate look about half as expensive as it is: 7% flat over five years works out to roughly 12.5% on a reducing balance. The calculator accepts flat-rate offers and shows their reducing-balance equivalent, so they can be compared fairly.
Fees deducted from the payout
Some lenders take the fee out of the money they send you. Borrow ₹5,00,000 with a 1% fee deducted and you receive ₹4,95,000, but you repay interest on the full ₹5,00,000. Fees added to the loan instead raise the balance and your payment. Fees paid at signing come out of your own pocket. The same fee costs a different amount under each method, so enter it exactly as the lender charges it.
Why total cost and APR can disagree
The APR spreads fees and interest into one yearly rate, and it accounts for timing: a fee paid on day one weighs more than interest paid years later. Total cost simply adds up the money. When a fee-heavy offer only just wins on total cost, the APR can still favour the other offer. In the mortgage example, at 48 months B costs $30.68 less, yet A has the lower APR (7.000% vs 7.089%). When the gap is that small, both are reasonable choices. Choose on total cost if you're confident about how long you'll keep the loan.
What to ask each lender
- The interest rate, and whether it's flat or on a reducing balance.
- Every upfront fee (origination, processing, points, tax on fees) and how it's paid.
- Any monthly account or servicing fee.
- The early payoff or foreclosure penalty, and when it stops applying.
- The disclosed APR, to check against the figure here.