FinancialTools.ai · Free business tools
Loan Comparison Calculator
Compare two fixed-rate loan offers for the same amount. See which has the lower monthly payment and which costs less after interest and upfront fees.
Inputs changed. Select Compare Loans to update these results.
Lower monthly payment
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Lower total borrowing cost
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Your side-by-side comparison
| Compare | Loan A | Loan B |
|---|---|---|
| Loan amount | — | — |
| Annual interest rate | — | — |
| Loan term | — | — |
| Monthly payment | — | — |
| Total interest | — | — |
| Upfront fees | — | — |
| Total borrowing cost Interest + upfront fees | — | — |
| Total loan payments Principal + interest | — | — |
| Total paid, including fees Principal + interest + upfront fees | — | — |
Payment vs. total cost
A lower payment can come with a longer term and more interest. Compare both results before choosing a financing option.
How fees are treated
Fees are paid separately upfront. They increase total borrowing cost but do not change the monthly payment in this model.
Keep the comparison fair
Both offers use the same principal. Review payment frequency, collateral, and other terms alongside these estimates.
Educational estimates, not loan offers or recommendations. Both loans are assumed to have fixed nominal annual interest rates, equal monthly payments, and no balloon balance, with the first payment one month after funding. Enter interest rates rather than fee-inclusive APRs. Fees are paid out of pocket at closing, not financed or withheld from proceeds. Recurring fees, early-payoff charges, variable rates, extra payments, taxes, and the time value of money are excluded. This calculator does not compute APR. Totals use unrounded calculations; amounts are rounded for display. Comparisons use displayed cent amounts. Actual lender calculations may differ. Your entries stay in this calculator unless you request an AI explanation. They are not sent to our financing partner.
Understand your comparison
Get a plain-language explanation of your payments, borrowing costs, and the tradeoffs between these two scenarios.
Compare your loans, then select the checkbox to request an explanation.
AI can make mistakes. Check the calculator figures and lender terms. This is educational information, not financial advice or a loan offer.
We may earn a referral commission if you obtain funding through a partner link.
How to Compare Business Loans
1. Enter Your Loan Amount
Enter the amount you plan to borrow. The calculator uses the same loan amount for both scenarios, so you can compare the cost of borrowing the same amount.
2. Add the Details for Each Loan
For each offer, enter the annual interest rate, repayment term in months, and upfront fees.
Use details from actual offers or test hypothetical scenarios if you’re still planning.
3. Select Compare Loans
Review the results side by side. The calculator separately highlights the loan with the lower monthly payment and the loan with the lower total borrowing cost.
4. Explore Different Scenarios
Adjust the rates, terms, or fees and calculate again. You can also download a CSV file containing your comparison.
Understand Your Comparison Results
Monthly Payment
The estimated monthly payment includes principal and interest. In this model, you pay upfront fees separately, and they don’t affect the monthly payment.
Total Interest
This is the estimated interest paid over each loan’s full repayment term.
Total Borrowing Cost
This combines total interest and the upfront fees you enter. It shows the estimated cost of borrowing, excluding repayment of the original principal.
Total Paid Including Fees
This includes the original loan amount, total interest, and upfront fees. It represents the total amount paid over each scenario’s full term, based on the calculator’s assumptions.
Lower Payment or Lower Total Cost?
The calculator highlights these separately because they answer different questions.
A lower monthly payment means a smaller scheduled payment, which may be useful when evaluating monthly cash flow.
A lower total borrowing cost means less estimated interest and upfront fees over the full loan term.
One offer may have the lower payment while the other has the lower overall cost. Review both results alongside your business’s budget and repayment plans.
How Upfront Fees Are Calculated
The calculator treats upfront fees as a separate expense paid out of pocket at closing. It adds them to borrowing costs but does not add them to the loan balance or deduct them from the funds received.
If an offer finances fees, deducts them from loan proceeds, or includes recurring charges, this calculator will not fully reproduce that financing structure.
What This Calculator Assumes
Both scenarios use fixed interest rates and equal monthly payments that fully repay the loans over their selected terms. The first payment is assumed to occur one month after funding.
The calculator does not model variable rates, daily or weekly payments, balloon payments, extra payments, early-payoff charges, or recurring fees. It does not calculate APR.
When loan terms differ, the totals cover different repayment periods. The results compare full-term costs, not costs over a shared holding period.
Frequently asked questions
Yes. You can use it for free to compare loan scenarios and download your results.
Yes, if both offers fit the calculator’s assumptions: the same loan amount, fixed interest rates, equal monthly payments, and upfront fees paid separately. Check each offer for other charges or repayment conditions that the calculator does not include.
This calculator uses one shared loan amount for both scenarios. It compares rates, terms, and upfront fees for the same borrowed amount.
To estimate payments for different amounts individually, use our Business Loan Calculator.
Yes. Enter a separate term in months for each loan. The calculator compares the monthly payments and costs over each loan’s full term.
A three-year loan and a five-year loan, for example, will have totals covering different lengths of time.
No. Repayment length and upfront fees also affect total borrowing costs. A lower-rate loan can cost more overall if it has a longer term or higher fees.
Review upfront and recurring fees, total repayment, payment frequency, collateral requirements, personal guarantees, and early-payoff terms. This calculator compares selected payment and cost figures; it does not evaluate every condition in a financing agreement.
Spreading repayment over more months can reduce the monthly payment while increasing the total interest paid. The calculator highlights payment and borrowing cost separately to make that trade-off easier to see.
Enter the loan’s nominal annual interest rate and add the applicable upfront fees separately. This calculator does not calculate APR. Entering a fee-inclusive APR while also entering those fees can misrepresent the costs.
The calculator assumes those fees are paid separately at closing. They increase total borrowing costs but do not increase the amount financed.
It identifies the lower monthly payment and lower modeled borrowing cost. It does not determine which loan best fits your business or evaluate other terms, such as collateral requirements, repayment flexibility, or eligibility.
Yes. After calculating, use the CSV download option to save the inputs and results for reference.
No. The calculator does not perform a credit check or submit a financing application.
No. Results are estimates based on your inputs and the calculator’s assumptions. Actual payments and costs may differ because of lender calculations, fees, payment dates, and other terms.
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Explore Your Business Financing Options
Use your comparison to understand the numbers before taking the next step. Review available financing terms with a clearer picture of your target monthly payment and overall borrowing cost.
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