Choose the loan that fits your budget best. Adjust extra payments, fees, and dates easily. View savings, payoff speed, and total interest instantly here.
These values show how the comparison behaves with typical inputs.
| Loan | Amount | Rate | Term | Extra | Base payment | Total interest | Payoff time |
|---|---|---|---|---|---|---|---|
| Loan A | $200,000.00 | 6.75% | 30 years | $0.00 | $1,297.20 | $266,990.63 | 30 years |
| Loan B | $200,000.00 | 6.15% | 30 years | $50.00 | $1,218.46 | $209,580.39 | 26 years 11 months |
The base monthly payment uses the standard amortization formula: Payment = P × r × (1+r)^n ÷ ((1+r)^n − 1).
Each schedule month splits the payment into interest and principal, then reduces the balance. Extra payments apply to principal, which can shorten the payoff time and reduce interest.
Notes: Fees are treated as paid upfront for the APR estimate. Escrow does not change loan interest, but it affects your monthly cash outflow.
A fair comparison starts with consistent assumptions: loan amount, term length, and the month payments begin. This calculator uses an amortization schedule so you can see how principal reduction and interest accrual evolve over time. Add monthly escrow (taxes and insurance) to reflect real cash needs, and enter upfront fees to reflect closing costs.
Base payment covers only principal and interest. All‑in outflow adds any extra payment and escrow. In the demo, Loan A at $250,000, 6.50%, 30 years produces a $1,580.17 base payment, before escrow. Loan B at $250,000, 5.90%, 30 years produces $1,482.84. That is about $97.33 less per month, and the gap widens further if escrow differs between loans.
Extra principal payments reduce the balance faster, which also reduces future interest. With a $50 extra payment in the demo, Loan B pays off in about 331 months (27 years 7 months) instead of 360 months. With a February 2026 start, payoff is about August 2053 versus January 2056. The balance chart helps you see where the faster option pulls away.
Interest is the biggest lever. In the demo, Loan A pays $318,861 in interest, while Loan B pays about $255,962, a difference near $62,900. Fees change true cost: adding $2,500 to Loan A and $4,000 to Loan B yields estimated total costs of about $571,361 and $509,962. When you enable the fee‑based APR estimate, the tool approximates how upfront fees raise the effective borrowing rate.
Use the monthly outflow to test affordability, then use total cost and payoff month to judge value. If one option has a slightly higher payment but much lower interest, it may still be cheaper overall. For short holding periods, compare the first few years of schedules and look at remaining balance at the sale or refinance date. Always confirm lender disclosures, especially for adjustable rates or changing escrows.
Base payment is principal plus interest only. It excludes escrow and any extra principal. Use base payment to compare interest cost structures; use all‑in outflow to test your actual monthly budget.
Extra amounts are applied directly to principal after interest is computed for the month. That reduces the remaining balance, which lowers future interest and can shorten the payoff time.
Different rates, terms, and extra payments change how fast principal declines. Even small extra payments can remove many months near the end of the schedule.
No. It’s an approximation that treats fees as paid upfront and solves for an equivalent rate that matches the payment stream. Lenders may calculate APR differently using regulated rules.
Escrow does not change loan interest because it is not applied to the balance. It increases monthly cash outflow, which is why the calculator shows all‑in outflow separately.
Yes. Enter each loan’s term and rate, then compare monthly outflow, total interest, total cost with fees, and payoff month. This helps you weigh affordability against long‑run cost.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.