CalculynQuick answer
$25,000 at 6.5% for 5 years costs ~$29,348 total; the same loan at 7.5% for 6 years costs ~$31,069 — Loan A saves ~$1,721.
How it works
A lower monthly payment isn't always cheaper — a longer term can mean thousands more in interest. Compare total cost, not just the payment.
Formula
Payment = P × i ÷ (1 − (1+i)^−n); Total cost = Payment × months
Assumptions & limitations
- Results are rounded for display.
Frequently asked questions
What about fees?
Add origination fees to the loan amount, or compare APRs instead of interest rates.