Enter up to 4 loan offers and instantly see which one costs less in monthly payments, total interest, and total cost. Make a data-driven decision.
| Metric | Option A | Option B |
|---|---|---|
| Loan Amount | $25,000 | $25,000 |
| Interest Rate | 7.99% | 10.49% |
| Loan Term | 36 months (3.0 yrs) | 60 months (5.0 yrs) |
| Monthly Payment | $783 | $537 |
| Total Interest Paid | $3,199 | $7,233 |
| Total Cost of Loan | $28,199 | $32,233 |
Lowest Total Cost
Option A saves you $4,035 in total interest compared to Option B.
Monthly Payment Difference
Option B has a $246/mo lower payment, but check total cost above -- lower monthly payments often mean more interest over time.
When you receive multiple loan offers, it can be tempting to just pick the one with the lowest monthly payment. But the lowest monthly payment does not always mean the cheapest loan. A longer repayment term lowers your monthly bill but dramatically increases the total interest you pay over the life of the loan. This comparison tool helps you see the full picture.
Focus on total cost, not just monthly payments. A $25,000 loan at 7.99% for 36 months costs about $2,995 in total interest. The same loan at 10.49% for 60 months costs about $7,071 in interest -- more than double -- even though the monthly payment is $128 lower. The right choice depends on your budget and priorities, but you should always make that decision with full information.
Compare APR, not just interest rate. The Annual Percentage Rate (APR) includes both the interest rate and any origination fees or closing costs rolled into the loan. A loan advertising 6.99% interest but charging a 3% origination fee actually costs more than a loan at 7.49% with no fees. Always use the APR for apples-to-apples comparisons.
Check for prepayment penalties. Some lenders charge a fee if you pay off the loan early. If you plan to make extra payments or pay off the loan ahead of schedule, look for offers with no prepayment penalties. This gives you the flexibility to save on interest by accelerating payments when possible.