Calculator Inputs
The page stays in a single-column flow, while the calculator area becomes three columns on large screens, two on medium screens, and one on mobile.
Example Data Table
This example shows realistic values for comparing three real-estate financing options.
| Loan | Amount | Rate | Term | Fees | Points | Extra Payment | Payment Frequency | Compounding |
|---|---|---|---|---|---|---|---|---|
| Option A | $250,000 | 6.25% | 30 years | $3,200 | 0.00% | $0 | Monthly | Monthly |
| Option B | $250,000 | 5.85% | 20 years | $4,800 | 1.00% | $0 | Monthly | Monthly |
| Option C | $250,000 | 6.05% | 30 years | $2,900 | 0.25% | $75 | Biweekly | Monthly |
Formula Used
The calculator converts the quoted nominal rate into an effective yearly rate, then converts that into the payment-period rate.
1) Effective Annual Rate
EAR = (1 + r / m)m - 1
r = nominal annual rate, m = compounding periods per year.
2) Continuous Compounding Case
EAR = er - 1
Used when compounding is continuous instead of periodic.
3) Payment-Period Rate
i = (1 + EAR)1 / p - 1
p = number of payments per year.
4) Standard Loan Payment
PMT = P × [ i / (1 - (1 + i)-n) ]
P = principal, i = payment-period rate, n = total payment periods.
5) Total Cost
Total Cost = Total Payments + Fixed Fees + Points Cost
Points Cost = Principal × Points %.
6) Interest Saved From Extra Payments
Interest Saved = Baseline Interest - Accelerated Interest
This shows how extra recurring payments reduce cost and term.
How to Use This Calculator
- Enter a shared payment anchor date and your preferred currency symbol.
- Fill in up to three real-estate loan scenarios.
- Add loan amount, quoted rate, term, fees, points, and any extra payment per period.
- Choose each loan’s payment frequency and compounding method.
- Click Compare Loan Interest to place results below the header and above the form.
- Review the winners for lowest total cost, lowest payment, and fastest payoff.
- Use the summary table, graph, and amortization tabs to judge tradeoffs clearly.
- Download CSV or PDF after the results appear.
FAQs
1) What does this calculator compare?
It compares three real-estate loan options using payment size, total interest, fees, points, total cost, effective annual rate, and payoff timing.
2) Why are payment frequency and compounding separate?
Some loans compound monthly but collect payments biweekly or weekly. Separating them helps the calculator estimate borrowing cost more realistically.
3) Are fees included in total cost?
Yes. Fixed fees and discount points are added to payment totals, so the reported total cost reflects both repayment and upfront borrowing expense.
4) What are discount points?
Discount points are upfront charges usually expressed as a percentage of loan amount. Paying points can reduce the quoted rate, but increases initial cost.
5) How do extra payments affect results?
Extra recurring payments reduce principal faster, which lowers future interest and can shorten the payoff period significantly.
6) What is monthly equivalent payment?
It converts the chosen payment schedule into a monthly-style figure, making weekly, biweekly, and quarterly loans easier to compare side by side.
7) Why can a lower rate still cost more?
A lower quoted rate can still cost more if fees, points, or a shorter repayment period increase cash outflow across the full loan term.
8) Is this the same as legal APR disclosure?
No. This tool estimates effective borrowing cost for comparison. Formal lender disclosures may follow different rules, timing, and regulatory calculations.