How do I compare two loans fairly?
Compare all-in cost: monthly payment plus total interest plus fees. The lower monthly payment isn't always cheaper — a longer term lowers the payment but increases total interest. This calculator shows you both numbers side by side.
Why is a loan's interest rate not the only thing that matters?
Loan terms and fees change the cost. A loan with a slightly higher rate but no origination fee can beat a lower-rate loan with a large fee — especially when you'd pay the fee for only a short period.
Does the calculator include fees in the monthly payment?
Fees are added to the borrowed amount before the payment is calculated, so the monthly payment reflects the true cost of the loan — the same way an origination fee added to principal works in practice.
Which loan should I choose if one has a lower payment?
Choose the loan with the lower total cost (principal + interest + fees) unless the smaller payment matters more to your monthly cash flow. Use the difference shown in the results to decide.
Can I compare loans with different terms?
Yes. Enter a different number of years for each loan. The calculator shows total interest and total cost for each so you can see whether a shorter term is worth the higher payment.
What is the 'total cost' of a loan?
Total cost is the full amount you repay: the money you borrowed, every dollar of interest over the life of the loan, and any fees. Comparing two loans by total cost is the fairest way to see which is cheaper.