Compare Up to Three Loan Offers
The page uses a single-column flow, while calculator inputs become three columns on large screens.
Example Data Table
These sample values match the built-in example set and help verify the calculator quickly.
| Shared Input | Value | Offer A | Offer B | Offer C |
|---|---|---|---|---|
| Loan Amount | $20,000 | Bank A | Bank B | Credit Union C |
| Term / Frequency | 60 months / Monthly | 7.20% nominal | 6.95% nominal | 7.10% nominal |
| Compounding | Varies by offer | 12 per year | 12 per year | 4 per year |
| Origination Fee | Included below | $400 | $650 | $250 |
| Other Closing Costs | Included below | $300 | $150 | $125 |
| Discount Points | Percent of loan amount | 1.00% | 0.00% | 0.50% |
Formula Used
1) Effective annual rate: EAR = (1 + r / m)m - 1
r is the nominal annual rate, and m is the compounding periods per year.
2) Payment-period rate: i = (1 + EAR)1 / f - 1
f is the number of payments per year, such as 12 for monthly payments.
3) Amortized payment: PMT = P × i / [1 - (1 + i)-N]
P is the loan amount, i is the payment-period rate, and N is the number of payments.
4) Total interest: Total Payments - Principal
This shows how much interest you pay over the full term.
5) Total fees: Origination Fee + Other Closing Costs + (Points % × Loan Amount)
Points are converted into dollars before being added to the fee total.
6) Fee-adjusted annualized cost: solve for the periodic rate that discounts all scheduled payments to the net proceeds received.
Net proceeds equal loan amount minus total fees. The solved rate is annualized for a fair comparison.
How to Use This Calculator
- Enter the loan amount and full term in months.
- Select the payment frequency used by the loan offers.
- Fill in up to three lenders with rates, compounding, fees, and points.
- Click Compare Interest Rates to show the results above the form.
- Review the adjusted annualized cost first, then inspect payments and total cost.
- Use the CSV or PDF buttons to save the comparison output.
FAQs
1) What does this calculator compare?
It compares quoted rates, effective annual rates, payment size, total interest, fees, net proceeds, and a fee-adjusted annualized borrowing cost across three loan offers.
2) Why can the lowest quoted rate lose?
A lower stated rate may still cost more when origination fees, closing costs, or discount points reduce the cash you actually receive.
3) What is net proceeds?
Net proceeds are the usable funds after subtracting upfront fees and points from the stated loan amount. Lower proceeds raise the true borrowing cost.
4) Does payment frequency matter?
Yes. Monthly, biweekly, weekly, and quarterly schedules change the payment-period rate, the number of payments, and the total interest paid.
5) Are discount points treated as interest?
No. The calculator records points as upfront fees. They still affect your economic cost because they reduce net proceeds immediately.
6) Is the adjusted annualized cost the same as APR?
It is conceptually similar because both account for financing cost beyond the headline rate. Exact legal APR disclosures may follow lender-specific rules.
7) Can I use this for mortgages, auto loans, or personal loans?
Yes. It works best for fixed-payment amortizing loans where the principal, rate terms, and upfront fee structure are known.
8) What result should I trust first?
Start with the fee-adjusted annualized cost, then confirm the payment amount and total borrowing cost still fit your budget and timeline.