Loan Compare Calculator
Loan Amount =
First Loan
Interest/Yr =
Years =
Payment =
Total Paid =
Second Loan
Interest/Yr =
Years =
Payment =
Total Paid =
Help
Compare monthly payments for two competing loans or mortgages. It is assumed that payments are made monthly and interest is compounded monthly.
- Loan Amount: amount of the loan or mortgage
First Loan:
- Interest/Year: interest rate expressed as a percentage for the first loan
- Years: number of years for the first loan
- Payment: first loan's payment
Second Loan:
- Interest/Year: interest rate expressed as a percentage for the second loan
- Years: number of years for the second loan
- Payment: second loan's payment
Examples
Two banks are offering you a loan of $25,000. The first bank is offering a 3 year, 7.5% loan while the second is offering a 5 year 6.25% loan. Which will yield the lower monthly payment? Which of the two loans is less expensive over its life?
- Loan Amount: $25,000.00
First Loan:
- Interest/Year: 7.5%
- Years: 3
Second Loan:
- Interest/Year: 6.25%
- Years: 5
Select "=" on two Payment rows. The first loan is $777.66 per month with $27,995.60 paid over the life of the loan while the second is $486.23 per month with $29,173.89 paid over the life of the loan.
The second loan is less expensive month-to-month but the first loan is less expensive over its life.
Keywords
Loan Amount
Interest/Yr
Years
Payment
Total Paid
Interest/Yr
Years
Payment
Total Paid
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Mortgage
Loan
