📊 Loan Comparison Calculator
📈 Loan Comparison Results
Enter loan details and click "Compare Loans" to see side-by-side comparison
🧮 Understanding Loan Comparison
Comparing loans helps you make an informed financial decision. Key metrics to consider:
- Annual Percentage Rate (APR): The effective annual rate including interest and fees, providing a true cost comparison.
- Total Repayment Amount: Principal + interest + fees over the life of the loan.
- Monthly Payment (EMI): The fixed amount you'll pay each month.
- Total Interest Paid: The total interest cost over the loan term.
APR Calculation: APR = [(Fees + Total Interest) / Principal] / (Tenure in days) × 365 × 100
Compare loans to identify the most cost-effective option, understand true borrowing costs, and choose a repayment plan that fits your budget.
How to Use the Loan Comparison Calculator
This calculator lets you compare two loan offers side by side so you can quickly see which one costs less overall. Follow these steps to compare your options:
- Select your currency from the dropdown so all figures display in the correct format.
- Enter the details for Loan Option 1 — the loan amount (principal), the annual interest rate, the loan tenure in months, and any one-time origination fees the lender charges.
- Enter the details for Loan Option 2 in the same way, using the terms from the second offer you're considering.
- Click "Compare Loans" to generate a side-by-side results table showing each loan's monthly payment, total interest, total fees, total repayment amount, APR, and estimated payoff date.
- Look for the "Best Deal" badge — it highlights whichever option has the lower APR, since APR reflects the true cost of borrowing including fees.
- Click "Reset All" to clear every field and start a new comparison.
Tip: even if two loans have similar interest rates, differences in fees or tenure can change which one is actually cheaper — always compare using the APR and total repayment amount, not just the monthly payment.
Frequently Asked Questions
1. What's the difference between interest rate and APR?
The interest rate only reflects the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus any origination fees or other charges, spread over the loan term, giving you a more accurate picture of the loan's true annual cost.
2. Why might a loan with a lower interest rate not be the best deal?
A lower interest rate can be offset by higher origination fees or a longer tenure, which increases total interest paid over time. Comparing APR and total repayment amount together gives a fairer comparison than looking at the interest rate alone.
3. Does a longer loan tenure always mean I'll pay more interest?
Generally yes. A longer tenure lowers your monthly payment but increases the total interest paid because interest accrues over more months. A shorter tenure raises the monthly payment but usually reduces total interest paid.
4. What counts as an origination fee?
Origination fees are one-time charges a lender applies for processing or issuing the loan, such as administration, underwriting, or processing fees. They're added to your total cost and factored into the APR calculation here.
5. Can I compare more than two loans at once?
This calculator is designed for comparing two loan options at a time. If you have more than two offers, run the comparison in pairs — for example, compare your top two, then compare the winner against your next option — to narrow down the best deal.