Loan Comparison Calculator
Compare two or three fixed-rate loans by monthly payment, total interest, fees, and total cost, or test how loan term changes cost.
Loan A
Loan B
Enter loan details
Enter loan details
About This Loan Comparison Calculator
This loan comparison calculator helps compare fixed-rate loan offers side by side. Enter the amount, term, interest rate, and fees for each option, then compare monthly payment, total interest, total fees, and total cost.
Use Compare Two for a simple head-to-head, Compare Three when you have several offers, or Term Impact when you want to see how three, five, and seven year terms change the cost of the same loan.
The calculator highlights the lowest total cost option. That is useful for SEO intent around loan cost comparison, but it is not a full lender recommendation because real agreements may include early repayment charges, variable rates, payment holidays, insurance, or eligibility rules.
About the Loan Comparison Calculator
When shopping for a personal loan, mortgage, or car loan, it is easy to be seduced by a low monthly payment - without realising you are paying far more interest over a longer term. This loan comparison calculator cuts through the noise by showing you the complete cost picture for up to three loans side by side.
Enter the amount, term, rate, and any fees for each loan. The calculator applies the standard amortisation formula to produce the monthly payment, total interest, and total cost for each option - then highlights the cheapest deal with a clear badge so there is no ambiguity.
The Term Impact tab is particularly useful when you have received a single loan offer and want to understand the trade-off between a shorter term (higher monthly payment, less total interest) and a longer term (lower monthly payment, more total interest). Enter the loan details once and the calculator renders all three term options instantly.
Loan Comparison Example
Imagine one lender offers GBP 15,000 over three years at 9% APR, while another offers the same amount over five years at 10% APR. The five-year option may have the lower monthly payment, but it can cost much more overall because interest is charged for longer.
This calculator makes that trade-off visible by showing monthly payment, total interest, fees, and total cost together instead of letting one headline number dominate the decision.
Why Side-by-Side Comparison Matters
Loan offers can differ by rate, term, setup fee, and payment size. A lower APR is usually attractive, but a high fee or longer term can still make the total cost worse.
Side-by-side comparison is also useful for affordability. The cheapest loan overall is not always practical if the monthly payment is too high for your budget.
How to Choose Between Loan Offers
First compare total cost, then check whether the payment fits comfortably. Look for arrangement fees, early repayment charges, variable-rate risk, and whether the quoted APR is guaranteed or only representative.
If two loans are close, prefer the one that gives enough monthly breathing room without adding unnecessary years of interest.
Reading the result with real-world context
The cheapest badge is based on total cost from the amount, term, rate, and fees you enter.
A lower monthly payment can still be more expensive overall if the term is longer.
The Fees field is a simple amount added to total cost; it is not an APR engine and does not spread fees into the interest rate.
The calculator assumes fixed-rate repayment maths for the whole term.
Common mistakes to avoid
Choosing the cheapest total cost when the monthly payment is too tight for your budget.
Comparing offers with missing fees or different loan amounts.
Using it as a full mortgage refinance calculator when property taxes, insurance, points, escrow, or introductory-rate periods matter.
How to combine this with related calculators
Use apr when you need to estimate the fee-inclusive annual percentage rate for one offer.
Use loan when you need max-loan or implied-rate modes rather than side-by-side comparison.
Use amortisation when the winning option needs a payment-by-payment schedule.
When to revisit the numbers
Rerun the comparison whenever a lender changes rate, term, fees, or monthly payment.
Review again if your budget changes, because the lowest total cost may not be the most comfortable monthly payment.
Keep the offer date visible because loan quotes and eligibility can change quickly.
How to Use This Calculator
- 1
Choose a comparison mode
Select Compare Two Loans to compare two options side by side, Compare Three Loans to evaluate three at once, or Term Impact to see how different loan lengths affect the cost of a single loan.
- 2
Enter the loan details
For each loan, enter the amount, term in years, annual interest rate, and any upfront fees. The calculator instantly shows the monthly payment, total interest, and total cost for each loan.
- 3
Identify the cheapest loan
The loan with the lowest total cost is highlighted with a Cheapest badge. Total cost includes principal repaid, all interest paid, and any fees - giving you a true like-for-like comparison.
- 4
Use Term Impact to find the right balance
Switch to the Term Impact tab and enter a single loan's amount and rate. The calculator immediately shows the 3-year, 5-year, and 7-year versions side by side so you can see the trade-off between monthly payment and total interest.
Frequently Asked Questions
What is the most important factor when comparing loans?
The total cost of the loan - not just the monthly payment. A longer loan term always produces a lower monthly payment, but you pay significantly more interest over time. The best loan is typically the one with the lowest total cost (principal plus interest plus fees) that still fits your monthly cash flow.
Should I choose the lowest interest rate or the lowest monthly payment?
Prioritise the lowest total cost. A lower interest rate almost always wins on total cost, but a very short term with a slightly higher rate can result in a higher monthly payment. Use the Term Impact tab to see how different terms affect your monthly payment and total interest for the same loan.
What fees should I include in the loan comparison?
Include any upfront fees charged by the lender - arrangement fees, origination fees, processing fees, or broker fees. Ongoing fees (such as monthly account fees) should be multiplied by the loan term in months and added to the fee field for an accurate comparison.
What is APR and is it the same as the interest rate?
APR (Annual Percentage Rate) includes both the interest rate and any mandatory fees, expressed as a yearly rate. When comparing loans, the APR gives a fairer like-for-like comparison than the nominal interest rate alone. This calculator uses the rate you enter for the amortisation calculation; include fees separately in the Fees field.
How does a shorter loan term affect the total cost?
A shorter term means higher monthly payments but substantially less total interest paid. For example, a GBP 10,000 loan at 6% over 3 years costs far less in total interest than the same loan over 7 years, even though the monthly payment is much higher. Use the Term Impact tab to visualise this trade-off.
Can I use this calculator for mortgages?
You can compare fixed-rate mortgage-style payments with it, but it is not a full mortgage comparison calculator. It does not include deposit bands, property taxes, insurance, stamp duty, PMI, escrow, remortgage fees, or introductory-rate changes. Use the mortgage calculator for deposit and affordability questions.
Does the cheapest badge mean I should choose that loan?
No. The badge marks the lowest total cost from the numbers you entered. Before choosing, check affordability, early repayment rules, variable-rate risk, eligibility, fees not entered in the calculator, and whether the monthly payment leaves enough budget room.
Is the Loan Comparison Calculator financial advice?
No. It is a general planning estimate based on the values you enter. Confirm important borrowing, investing, tax, or property decisions with qualified professionals and official terms from lenders or providers.
How often should I update my inputs?
Update when rates, income, prices, rent, contributions, or goals change materially. For most household finance decisions, reviewing every few months or after a major change is enough.
Why might this differ from my bank or broker quote?
A lender quote may include exact payment dates, daily interest, compulsory fees, early repayment charges, eligibility rules, payment protection, or introductory rates. This calculator compares the fixed-rate amount, term, rate, and fees you enter.