Loan Comparison Calculator
Got two loan offers? Enter both and see the full picture: monthly payment, total interest, and total cost. Our AI analyzes the trade-offs and tells you which loan actually saves you more money.
Loan A is the clear winner — it has both a lower monthly payment (by $23/month) and saves $1,372 in total interest. The 2.40% difference in APR accounts for most of the cost difference — even small rate differences add up to thousands over the life of a loan.
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Send Money NowAPR vs. Interest Rate: Which Number Matters?
Always compare APRs, not interest rates. The APR includes all fees and costs associated with the loan, giving you a true cost comparison. A loan with a 7% interest rate and 0.5% in origination fees has an APR closer to 7.5%. Two loans with the same interest rate can have different APRs depending on their fees.
Monthly Payment vs. Total Cost: The Trade-Off
A longer loan term gives you a lower monthly payment, but you pay more interest in total. A 5-year auto loan at 7% costs less overall than a 7-year loan at the same rate, even though the monthly payment is higher. Use this calculator to see exactly how large that difference is in your situation.
When to Choose the Loan With Higher Monthly Payments
If you can comfortably afford the higher payment, the loan that costs less overall is almost always the better choice. The extra monthly cash saved by choosing a longer/cheaper loan is rarely invested — it gets spent. Choose the shorter, higher-payment loan if total cost is your priority and your cash flow supports it.
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