Compare two loan offers side by side. The Loan Comparison Calculator takes loan amount, offer a: interest rate, offer a: tenure, offer a: fees, offer b: interest rate, offer b: tenure, offer b: fees and returns cost difference (a minus b) plus cheaper offer, offer a: emi, offer a: total interest and fees, offer b: emi, offer b: total interest and fees. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
The headline interest rate is only part of what a loan costs: fees, the structure of repayments and how the rate is quoted (flat or reducing) all change the true cost. Compare offers on total interest and effective rate, not on EMI alone. Use the worked example below to check the maths against your own figures.
How the Loan Comparison Calculator works
A lower rate over a longer tenure often costs more in total than a higher rate over a shorter one. Compare offers on total interest plus fees, then check the EMI is affordable.
Worked example
With the example values (loan amount of $500,000, offer a: interest rate of 9%, offer a: tenure of 5 years, offer a: fees of $5,000, offer b: interest rate of 8.5%, offer b: tenure of 7 years, offer b: fees of $10,000), the cost difference (a minus b) is -$47,381.73; cheaper offer Offer A costs less in total, offer a: emi $10,379.18, offer a: total interest and fees $127,750.66, offer b: emi $7,918.24, offer b: total interest and fees $175,132.39. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is cost difference (a minus b) calculated?
total cost = EMI × months − amount + fees, for each offer.
Which figures do I need?
Loan amount, offer a: interest rate, offer a: tenure, offer a: fees, offer b: interest rate, offer b: tenure, offer b: fees. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the result include fees and charges?
Only where there is a fee input. Processing fees, insurance and prepayment charges add to the true cost; the APR and loan comparison calculators include them.
