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Loan comparison calculator

Compare two loan offers side by side: monthly payment, total interest and total cost, so you can pick the cheaper one on clear criteria.

Required fields are marked with an asterisk (*).

The same loan amount for both offers, because a fair comparison uses one amount.
The annual interest rate on offer A.
The annual interest rate on offer B.
How long offer A runs, in months or years depending on the chosen unit.
How long offer B runs, in months or years depending on the chosen unit.
Term unit
Choose whether the terms are measured in months or years.
Fees and charges on offer A (optional).
Fees and charges on offer B (optional).
The currency used to display the results.

When you borrow, offers come from different banks and lenders with different rates, terms and fees — and choosing can feel confusing. This calculator places two offers side by side on the same loan amount, showing the monthly payment, total interest, total cost and the difference, so you can decide on clear numbers.

Formula

Each offer’s monthly payment uses the fixed-rate annuity formula: payment = loan amount × monthly rate × (1 + monthly rate)^months ÷ ((1 + monthly rate)^months − 1). Fees are then added to total payments to give the total cost.

When is this useful?

Use this calculator when you receive multiple loan offers from different banks or lenders, so you can weigh the monthly payment and the total cost together rather than relying on the interest rate alone.

Worked example

Example using the calculator’s values: a 50,000 Jordanian dinar loan.
Offer A: 6% per year for 5 years with 300 dinars in fees.
Offer B: 7.5% per year for 5 years with no fees.
Offer A’s payment is about 966.64 dinars and its cost about 58,298 dinars.
Offer B’s payment is about 1,001.90 dinars and its cost about 60,114 dinars.
The cost difference is about −1,815 dinars in favor of offer A.

Assumptions

  • The same loan amount is used for both offers to keep the comparison fair.
  • The interest rate is fixed for the term of each offer.
  • Payments are made monthly and on time.
  • Entered fees are added to each offer’s total cost.
  • Results are estimates and do not account for exchange-rate changes or local regulations.

Common mistakes

  • Comparing the monthly payment alone and ignoring the term — a cheaper payment can cost more overall.
  • Comparing offers with different loan amounts: the rule is the same amount for both.
  • Forgetting fees when working out the total cost.
  • Confusing the monthly and annual interest rate.

Frequently asked questions

Which number should drive my decision?

Compare the total cost of each offer (payments plus fees) first, then use the monthly payment to judge whether it fits your monthly income.

What if the two terms differ?

You can enter different terms, but note that a longer term may lower the payment while raising total interest at the same time.

Can I use it for different loan amounts?

It is designed to compare both offers on the same loan amount. For different amounts, run each separately and compare the rates and relative costs.

Methodology and review

The calculator applies the fixed-rate annuity formula to each offer, then sums payments and fees to compute the total cost and show the difference. Results are approximate and for general planning; rules and fees vary by country and lender.

Results are estimates for informational purposes only and do not constitute financial advice or a lending offer.

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