How to calculate loan comparison
Payment = P × i ÷ (1 − (1+i)^−n); Total cost = Payment × months
Worked example. Loan A costs less overall: $1,773 saved.
Example inputs — Loan A amount: $25,000; Loan A interest rate: 6.5%; Loan A term (years): 5; Loan B amount: $25,000; Loan B interest rate: 7.5%; Loan B term (years): 6. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
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.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
What about fees?
Add origination fees to the loan amount, or compare APRs instead of interest rates.