APR Rate Comparison Calculator

Evaluate three loan offers side by side. See payments, fees, and true annual cost clearly. Find the lowest overall borrowing burden for decisions today.

Compare Loan Offers

Enter up to three offers. The calculator estimates monthly payments, total repayment, finance charge, and an effective APR that reflects fees and cash received.

Loan 1
Loan 2
Loan 3

Example Data Table

Offer Loan Amount Nominal APR Term Compounds / Year Upfront Fees Monthly Fee Fee Treatment
Offer A $20,000 7.90% 48 months 12 $450 $0 Deducted from proceeds
Offer B $20,000 6.90% 60 months 12 $1,200 $8 Deducted from proceeds
Offer C $20,000 8.40% 36 months 12 $0 $12 No financed fees

Formula Used

1) Equivalent monthly rate
im = (1 + APR / m)m / 12 - 1
APR is the nominal annual rate, and m is compounds per year.
2) Principal and interest payment
PMT = L × im / (1 - (1 + im)-n)
L is the balance used for amortization, and n is total monthly payments.
3) Monthly cost and total repayment
Monthly Cost = PMT + Monthly Fee
Total Repayment = Monthly Cost × n
4) Finance charge
Finance Charge = Total Interest + Upfront Fees + All Monthly Fees
5) Effective APR including fees
Net Proceeds = Σ [Monthly Cost / (1 + r)t]
Effective APR = (1 + r)12 - 1
The calculator solves r numerically from the loan cash flows.

How to Use This Calculator

  1. Enter the label, loan amount, nominal APR, term, and compounding frequency for each offer.
  2. Add any upfront fees and monthly service charges to reflect the real borrowing cost.
  3. Tick the checkbox when fees are rolled into the financed balance instead of deducted from disbursed cash.
  4. Click Compare APR Rates to show results above the form.
  5. Review effective APR, monthly cost, total fees, total interest, and total repayment.
  6. Use the CSV or PDF buttons to export the comparison table for records, sharing, or negotiation.

FAQs

1) What does this calculator compare?

It compares three loan offers using nominal APR, fees, monthly payment burden, total repayment, finance charge, and an estimated effective APR based on actual cash flows.

2) Why can a lower nominal APR still be more expensive?

A lower advertised rate may include large upfront fees, monthly service fees, or a longer term. Those extras can push the effective APR and total repayment above another offer.

3) What is net proceeds?

Net proceeds are the funds the borrower actually receives at the start. If fees are deducted upfront, net proceeds are lower than the stated loan amount.

4) What happens when I finance upfront fees?

The fee is added to the balance used for payment calculations. You receive the full loan amount, but interest is charged on a larger financed balance.

5) Does compounding frequency matter?

Yes. Different compounding frequencies slightly change the equivalent monthly rate. That affects payments, interest, and the relationship between nominal and effective annual cost.

6) Is the lowest monthly payment always best?

No. A lower monthly payment often comes from a longer term. That can increase total interest and total repayment even when the payment feels easier.

7) Should I compare loans with different terms?

Yes, but do it carefully. Effective APR helps standardize cost, while total repayment shows the full dollars paid. Review both before choosing.

8) Can I export the results?

Yes. After calculation, use the CSV button for spreadsheet analysis or the PDF button for sharing, documentation, or loan shopping discussions.


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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.