Loan Comparison Calculator
Loan Comparison is evaluated from Loan A - Amount, Loan A - Annual Rate and Loan A - Term. The calculation reports Loan A - Monthly Payment, Loan A - Total Cost and Loan B - Monthly Payment.
Results
About the Loan Comparison Calculator
The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
Monthly Payment = Loan x r x (1+r)^n / [(1+r)^n - 1]
Where r = annual rate / 1200, n = term in months
Total Cost = Monthly Payment x Months + Upfront Fees
Total Interest = Total Cost - Loan Amount
Savings = |Total Cost A - Total Cost B|
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: Monthly Payment = Loan x r x (1+r)^n / [(1+r)^n - 1] Where r = annual rate / 1200, n = term in months Total Cost = Monthly Payment x Months + Upfront Fees Total Interest = Total Cost - Loan Amount Savings = |Total Cost A - Total Cost B| Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: Same Amount, Different Rates
Inputs
With Loan A - Amount = 25,000, Loan A - Annual Rate = 11.5, Loan A - Term = 60 and Loan A - Upfront Fees = 0 as the stated inputs, the result is Loan A - Monthly Payment = $549.82, Loan A - Total Cost = $32,988.91 and Loan B - Monthly Payment = $518.96. Each value corresponds to the declared output fields.
Example 2: Lower Rate vs No Fees
Inputs
With Loan A - Amount = 300,000, Loan A - Annual Rate = 6.5, Loan A - Term = 360 and Loan A - Upfront Fees = 0 as the stated inputs, the result is Loan A - Monthly Payment = $1,896.2, Loan A - Total Cost = $682,633.47 and Loan B - Monthly Payment = $1,822.83. Each value corresponds to the declared output fields.
Example 3: Shorter Term vs Longer Term
Inputs
With Loan A - Amount = 20,000, Loan A - Annual Rate = 8.5, Loan A - Term = 72 and Loan A - Upfront Fees = 0 as the stated inputs, the result is Loan A - Monthly Payment = $355.57, Loan A - Total Cost = $25,600.87 and Loan B - Monthly Payment = $492.97. Each value corresponds to the declared output fields.
Example 4: Different Amounts — Comparing Net Cost
Inputs
With Loan A - Amount = 30,000, Loan A - Annual Rate = 7.99, Loan A - Term = 60 and Loan A - Upfront Fees = 0 as the stated inputs, the result is Loan A - Monthly Payment = $608.15, Loan A - Total Cost = $36,488.9 and Loan B - Monthly Payment = $674.94. Each value corresponds to the declared output fields.
Common Use Cases
- Compare two mortgage offers with different rates and terms
- Choose between a lower rate with higher fees vs a higher rate with no fees
- Decide between a shorter or longer loan term