CompareMage

Money and financing

Loan Comparison

Amortize two fixed-rate installment loans and see which one costs less over the full term — and which one has the lower monthly payment.

Decision: Which of these two loan offers costs less, and what am I trading for a lower payment?

This comparison runs in your browser. CompareMage does not send the numbers you enter to our servers.

36-month offer

Loan A

60-month offer

Loan B

Comparison result

36-month offer costs less over the full term.

Total repaid differs by $1,529.93 (6.88%). The lower monthly payment is 60-month offer. Those can be different offers.

Lower total repaid
36-month offer
Lower monthly payment
60-month offer
Total difference
$1,529.93
Interest difference
$1,529.93
Loan comparison
OfferMonthly paymentTotal interestTotal repaid
36-month offer$617.54$2,231.51$22,231.51
60-month offer$396.02$3,761.44$23,761.44

How to read the result

The lower total repaid is the cheaper loan if you keep it to term. The lower payment is easier on a monthly budget. Those can be different offers.

Calculated facts

Totals, differences, and break-even figures come only from the values on this page. They describe the math, not what you should do.

Decision factors

Fit, risk, time, quality, and personal constraints stay outside the calculator. A cheaper path can still be the wrong path for those reasons.

Methodology

Monthly payment uses the standard amortization formula: P × r × (1+r)^n / ((1+r)^n − 1), where r is APR/12 and n is months. At 0% APR, payment is P / n. Total paid is payment × n. Total interest is total paid minus principal. Displayed dollars are rounded to cents.

Assumptions

  • Fixed rate, fully amortizing, no extra payments.
  • No compounding quirks, balloon, or interest-only period.

Examples

Same principal, different terms

$20,000 at 7% for 36 months costs more per month and less interest than $20,000 at 7% for 60 months.

Rate versus fee-free longer term

A slightly higher APR on a shorter term can still beat a longer cheap-looking payment once total interest is counted.

How to use it

  1. Enter principal, APR, and term in months for each offer.
  2. Compare monthly payment, total interest, and total repaid.
  3. If the cheaper total and the cheaper payment are different loans, you are looking at a cash-flow tradeoff.

Limits

  • Credit approval, variable rates, and prepayment penalties are not modeled.
  • This is not a lending offer or advice.

Questions

Why can the lower monthly payment cost more overall?

A longer term spreads the same principal over more months. Interest has more time to accrue. Always read total repaid next to the payment.

Is APR the same as the interest rate?

For this calculator, APR is treated as the nominal annual rate used to compute a monthly periodic rate (APR / 12). Origination fees that are not rolled into principal should be added to the amount you finance or treated as extra cash.

Can I compare a 0% offer?

Yes. A 0% APR loan has a monthly payment of principal divided by months and zero interest.

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