Compare Up to Three Loan Offers
Enter each lender's quoted rate, charges, and loan term. The tool converts every offer into a fee-adjusted annual percentage rate.
Example Data Table
| Loan | Principal | Nominal APR | Term | Upfront Fee | Points | Monthly Fee | Annual Fee | Exit Fee |
|---|---|---|---|---|---|---|---|---|
| Loan A | $25,000 | 7.25% | 60 months | $350 | 0.50% | $4 | $0 | $0 |
| Loan B | $25,000 | 6.95% | 60 months | $650 | 0.00% | $0 | $45 | $0 |
| Loan C | $25,000 | 7.60% | 60 months | $150 | 0.25% | $2 | $0 | $75 |
Formula Used
1. Monthly rate from quoted APR:
Monthly Rate = (1 + Nominal APR / Compounding Periods)^(Compounding Periods / 12) - 1
2. Base amortized payment:
Payment = Principal × r ÷ (1 - (1 + r)^-n)
3. Net proceeds:
Net Proceeds = Principal - Upfront Fee - (Points % × Principal)
4. True APR estimate:
The tool solves the monthly internal rate of return on borrower cash flows, then annualizes it as Monthly IRR × 12.
5. Total repayment:
Total Repaid = Base Payments + Monthly Fees + Annual Fees + Exit Fee
This method helps compare loans with different fees, terms, and compounding rules on a consistent annual basis.
How to Use This Calculator
- Enter a label for each loan offer you want to compare.
- Add the principal, quoted APR, and repayment term in months.
- Include every lender charge, such as upfront fees, points, monthly fees, annual fees, and exit fees.
- Select the compounding frequency used by the lender.
- Click Compare APR Offers to generate the comparison block above the form.
- Review true APR, monthly payment, total repayment, and net proceeds before choosing a lender.
- Use the export buttons to save the comparison as CSV or PDF.
Frequently Asked Questions
1. What does this tool compare?
It compares quoted APR, fees, full monthly payment, total repayment, and fee-adjusted annualized cost across three loan offers.
2. Why can a lower quoted APR still cost more?
A lender can advertise a lower rate but add upfront, monthly, annual, or closing charges that raise the true borrowing cost.
3. What are origination points?
Origination points are percentage-based charges taken from the loan amount. They reduce your net proceeds and can increase the real APR.
4. Is true APR the same as effective annual rate?
Not exactly. The tool shows annualized monthly IRR as true APR and also displays the effective annual rate for added context.
5. Should I always choose the lowest monthly payment?
Not always. A lower payment may come from a longer term or larger fees, which can increase total repayment and overall APR.
6. Does the calculator support zero-fee loans?
Yes. Leave fee fields at zero and the comparison will focus on quoted rate, amortized payment, and total repayment.
7. Why are net proceeds important?
Net proceeds show how much cash you actually receive after upfront deductions, which matters when comparing usable borrowed funds.
8. Can I use this for mortgages, auto loans, or personal loans?
Yes. It works well for installment loans where payments are amortized and lender fees can change the real annual borrowing cost.