Loan Comparison Calculator
Not all loans are created equal. Upfront fees, monthly fees and variable interest rates can dramatically affect the cost of a loan over its entire term. Further complicating matters is the fact that some loans offer an introductory interest rate for a pre-determined term and an ongoing rate for the remainder of the life of the loan. How can you effectively compare two loan products with different interest rates and introductory terms?
The loan comparison calculator on this page can help you compare and contrast the costs of two different loans to determine which loan is the best deal for you.
To use the loan comparison calculator, begin by entering the details for each loan. What are the upfront and ongoing fees for each loan? What is the introductory interest rate? For how many monthly will that introductory rate last (intro term)? What is the interest rate after the introductory term expires? Once you've completed the loan details for each loan, enter the common loan details. How much are you planning to borrow (loan amount)? What is the loan term (in years)?
Once you've entered the unique and common data for each loan, the calculator will reveal your monthly payment amounts for each loan during the initial interest rate term and for the remainder of the loan. The calculator also shows the total amount paid for each loan after interest. Using the loan comparison calculator, you can make an educated decision regarding which loan is right for you.
- Because interest is assessed daily based on the remaining balance on the loan (known as the principal), paying higher payments (or applying a lump sum payment) while the interest rate is low during an introductory term can save a great deal in both interest and time. Pay as much as you can while the rates are favorable to save more time and money!