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Loan Comparison Calculator

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Our Loan Comparison Calculator allows you to compare two loan options side by side, helping you make a more informed decision. By entering the details of two loan offers, you can see which one will save you more in interest, fees, and total payments over time. Use this tool to easily identify the best loan for your financial needs.

How to Use the Loan Comparison Calculator

Step 1

Enter Common Loan Details

Loan Amount: Enter the total amount you wish to borrow for both loans.
Loan Term: Input the number of years over which you will repay the loan.

Step 2

Enter Loan 1 Details

Upfront Fees: Add any fees charged at the beginning of the loan.
Ongoing Monthly Fees: Include any monthly fees that come with the loan.
Intro Rate: Input the introductory interest rate (if any).
Intro Term: Add the duration for which the introductory rate is valid.
Ongoing Rate: Input the interest rate applied after the introductory period.

Step 3

Enter Loan 2 Details

Repeat the same steps as Loan 1 for Loan 2’s details, including upfront fees, ongoing monthly fees, and interest rates.

Step 4

View Your Results

See which loan will save you more in terms of total interest, fees, and monthly payments.
The chart will visually display the savings in interest and fees over the life of the loan.

Explanations of Key Terms

Upfront Fees: Fees you pay at the beginning of your loan term, such as application or establishment fees.
Ongoing Monthly Fees: Monthly fees charged by the lender for maintaining your loan.
Introductory Rate (Intro Rate): A lower interest rate offered for a limited time at the start of the loan.
Introductory Term (Intro Term): The period during which the introductory rate applies.
Ongoing Rate: The standard interest rate applied after the introductory period ends.
Total Payments: The total amount you’ll pay over the entire term of the loan, including both principal and interest.

FAQ

Why should I compare loans?

Comparing loans helps you understand the differences in interest rates, fees, and total repayment costs, so you can choose the loan that saves you the most money.

What are introductory rates?

Introductory rates are temporary, lower interest rates offered at the start of a After the introductory period, the rate typically increases to a standard rate.

Which fees should I consider when comparing loans?

Be sure to consider both upfront fees (such as application or setup fees) and ongoing monthly fees, as these can add up over time.

Can this calculator help me with refinancing decisions?

Yes, this tool is useful for comparing refinancing options as You can enter the details of your current loan and a potential new loan to see if refinancing will save you money.

How accurate are the savings estimates?

The savings estimates provided by this calculator are based on the information you Be sure to verify all details with your lender to get an exact comparison.

Example Scenarios

Example 1

Let’s say you are comparing two $500,000 loans over 30 years. Loan 1 has an introductory rate of 4% for 24 months, with a 5.50% ongoing rate. Loan 2 offers a slightly higher introductory rate of 4.25% for 36 months but has a lower ongoing rate of 5.00%. Based on these details:

Loan 2 will save you $39,882 over the life of the loan.

The monthly repayment for Loan 1 is initially $2,397.08, and $2,824.90 ongoing, whereas Loan 2 starts at $2,499.70 and reduces to $2,706.55 ongoing.
Total payments over 30 years are $1,007,095 for Loan 1 and $967,213 for Loan 2.

Disclaimer

Please note: The results provided by this calculator are estimates only and should be used for informational purposes. Always consult with a financial expert before making any decisions based on the results.