Compare two loans side by side — monthly payment, total cost, and the real winner after fees.
Lender A says 6.75%. Lender B says 7.10%. With fees, the higher rate might actually win. This calculator does the math on both, including the break-even period.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Compare APR + total interest + monthly payment + term, not just the rate.
A lower rate can lose to a longer term, higher fees, or worse prepayment terms. Always compare APR (which folds in fees), total interest paid, and the monthly payment amount you can actually afford.
APR — it includes fees, so it's the true cost.
Interest rate is what you pay on the principal. APR adds origination fees, discount points, and other costs amortized over the term. A 7.0% rate with $5k fees often costs more than a 7.3% rate with no fees.
Dramatically — a 30-year vs 15-year can double the interest paid.
Same loan, same rate: a 30-year term costs about 2× the interest of a 15-year. The monthly payment is lower, but you pay for that comfort with much more interest over time.
When fees are dramatically lower or the term is shorter.
A higher rate with no points/fees often beats a lower "headline" rate with $5k+ in costs — especially if you might refinance or sell within a few years before the points pay back.
The mechanics in short answers — no jargon, no upsell.
Principal, rate, term, and any upfront fees or points for each. The calculator simulates each amortization independently.
Total cost = (monthly payment × number of payments) + upfront fees. That's the true number to compare — not the rate alone.
APR amortizes fees over the term and adds them to the rate. Two loans with the same APR cost about the same — assuming you keep the loan to term.
If you might refinance or pay off early, the loan with lower fees usually wins regardless of which has the lower rate.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Lifetime interest + fees — the only number that actually matters.
See exactly how many months until paying points pays off vs not paying them.
Compare loans with different rates, terms, and fees — normalized to monthly + total.
Side-by-side payment view — see which loan fits your cash flow.
No lender, no kickback, no preferred partner — pure math on your numbers.
See how much extra you pay by stretching the term to lower the payment.
Everything you might ask before, during, or after using this tool.
Total cost = sum of all monthly payments over the loan term + any upfront fees or points. It's the all-in number you actually pay if you keep the loan to maturity. The calculator computes this for both loans for an apples-to-apples comparison.
One "point" equals 1% of the loan amount paid upfront in exchange for a lower rate (typically 0.25% per point). Worth it if you keep the loan long enough for the rate savings to exceed the upfront cost. Break-even is usually 5–7 years.
Usually yes — APR is the most honest single-number comparison. But APR assumes you keep the loan to term. If you might refinance or sell within a few years, the loan with lower upfront fees might win even at a higher APR.
Longer term = lower monthly payment but more interest paid. Going from a 15-year to 30-year roughly cuts the monthly by 30% but doubles the lifetime interest. Always think about both the payment AND the total cost.
Often yes. Lenders compete for your business — get multiple quotes and ask the higher-fee lender to match or beat. Even small concessions add up over the life of a 30-year mortgage.
Yes — the math is identical. The calculator amortizes any fixed-rate, fixed-payment loan: mortgage, personal loan, auto loan, student loan refi.
This calculator models fixed-rate only. Variable-rate loans introduce uncertainty — to compare them, model the best/worst case rate scenarios separately. ARM loans typically only make sense if you'll pay it off before the rate adjusts.
This calculator shows the cost difference. Whether you qualify for each is a separate question — talk to lenders for actual rate quotes based on your credit, income, and DTI.
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Rate alone is the most common mistake. A 7.0% loan with $5,000 in fees often costs more than a 7.3% no-fee loan, especially if you might refinance or sell within 5–7 years.
The right comparison: APR (which folds in fees), total dollars paid over the term, and the monthly payment amount you can actually fit into your budget.
Interest rate: what you pay annually on the outstanding principal. The smaller of the two numbers.
APR: rate + fees amortized over the loan term, expressed as a single percentage. Always equal to or higher than the rate.
APR is the better single-number comparison, but only if you'll keep the loan to term. If you might exit early, the rate (and the fees in dollars) matter more than the APR.
One point = 1% of the loan amount upfront, typically buying ~0.25% off the rate.
Math: divide the upfront cost by the monthly savings to get a break-even in months.
Example: $4,000 upfront, $50/month savings = 80 months (~6.7 years) break-even.
Stay longer than break-even: points win. Sell or refi before break-even: skip the points.
Shorter term: higher monthly, lower lifetime interest, faster equity buildup.
Longer term: lower monthly, higher lifetime interest, more cash flow flexibility.
The "right" term isn't universal — it depends on your income stability, other financial goals, and how the monthly payment fits into your budget.
A useful test: can you commit to the shorter-term payment for the full term, in a recession?
Two short notes worth reading before you trust any number on this page.
Your loan amount, rate, and prepayment inputs never leave your device. No accounts, no cookies on your numbers, no analytics on the values you type. Disconnect from the internet and it still works.
We are not a bank, NBFC, advisor, broker, or distributor of any financial product. The numbers shown here are estimates for educational purposes only, based on the inputs you provide.
Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
