Loan Estimate Comparison Table Calculator

This loan estimate comparison table calculator lets you enter the principal, annual percentage rate (APR), and term for up to three loans, then compares their estimated monthly payments and total interest. Use it to see the arithmetic side by side; lender disclosures may include costs and terms that this calculation does not model.

Formula

For each loan, the estimated fixed monthly payment is calculated with the level-payment formula:

Payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

Here, P is the loan principal in dollars, r is the monthly interest rate as a decimal (APR ÷ 1,200), and n is the number of monthly payments (term in years × 12). The payment is rounded to the nearest cent. Estimated total interest is payment × n − P; it uses that rounded monthly payment.

Each input set represents a separate loan estimate. Loan 1 and Loan 2 results appear as calculator outputs; Loan 3 inputs are included for entering a third offer, but the available output lines do not calculate its figures. To compare three offers, compare the first two in this calculator and run the third separately using the same formula, or use a calculator that displays all three result sets. Do not treat the input fields alone as a computed comparison.

Worked Example

Using the defaults for Loan 1: principal is $20,000, APR is 8%, and the term is 5 years.

• Monthly rate: 8 ÷ 1,200 = 0.0066667.
• Number of payments: 5 × 12 = 60.
• Unrounded payment: 20,000 × 0.0066667 ÷ [1 − (1 + 0.0066667)⁻⁶⁰] ≈ $405.53.
• Displayed monthly payment: $405.53.
• Total of rounded payments: $405.53 × 60 = $24,331.80.
• Estimated interest: $24,331.80 − $20,000 = $4,331.80.

For Loan 2’s defaults, the same calculation gives a monthly payment of about $400.76 and estimated total interest of $4,045.60. The small difference reflects the APR difference while principal and term remain unchanged.

What a Loan Estimate Comparison Shows

A comparison table is useful because a quoted payment by itself does not reveal how much is borrowed or how long repayment lasts. For an apples-to-apples arithmetic comparison, enter the amount actually financed, the APR supplied for that offer, and the repayment term. This calculator assumes equal monthly payments and a fixed APR throughout.

APR and interest rate are related but are not always interchangeable in a real offer. APR can reflect certain borrowing costs in addition to the stated interest rate, depending on the product and how the lender presents its disclosures. Since this calculation applies the APR as though it were the nominal annual rate used for monthly amortization, its result is an estimate rather than a reproduction of a formal lender disclosure.

For a more complete comparison, review the underlying documents for items this formula leaves out. For mortgage offers, for example, a quoted monthly amount may differ from the principal-and-interest payment because of property taxes, insurance, mortgage insurance, or escrow. Other loan types may have origination charges, upfront costs, variable rates, or a final balloon payment. Use the lender’s disclosed payment and cost figures when those features apply.

How to Compare Offers Fairly

1. Enter the same borrowing amount for each offer if you want to compare financing costs on equal principal. If the amounts differ, note that the payment and interest totals will not be directly comparable.
2. Use each offer’s stated APR and repayment term. Confirm that the term is in years here, and convert months to years if needed (for example, 36 months is 3 years).
3. Compare monthly payment and estimated total interest together. A longer term can lower the monthly payment while increasing the number of payments and total interest.
4. Check fees, payment schedules, rate-adjustment terms, and any other costs in the lender’s disclosure. These may change the actual amount paid.

Do not compare only the monthly payment when the loan amounts or terms are different. A lower payment may simply spread repayment over more months. Likewise, a lower estimated interest total does not account for fees or other expenses that are outside the formula.

Limits and Common Comparison Errors

• Entering the wrong amount: Use the principal being financed, not necessarily the purchase price or cash received before deductions.
• Confusing APR with a monthly rate: Enter APR as an annual percentage such as 8, not 0.08 or a monthly percentage. The calculator converts it to a monthly decimal.
• Mixing term units: The term input is years. Entering 60 to represent 60 months would be interpreted as 60 years.
• Expecting fees or escrow in the answer: They are not inputs and are not included. The displayed payment is principal and interest under the formula.
• Assuming every loan has a fixed rate: A variable-rate offer may change later, so a fixed-rate calculation cannot forecast its full repayment cost.
• Rounding differences: The payment is rounded to cents before total interest is calculated. A lender’s schedule may differ slightly due to payment dates, daily interest methods, or other contract details.

The formula also assumes that the first regular payment is made one month after borrowing and that payments continue on schedule. It does not model extra payments, skipped payments, late charges, refinancing, or early payoff.

Frequently Asked Questions

What is a loan estimate comparison table?
A table that places loan terms and estimated costs side by side. A useful comparison identifies the amount borrowed, APR, term, monthly payment, and total interest, while separately noting costs not included in the payment calculation.

Does APR include all loan costs?
Not necessarily. APR may incorporate certain costs under the lender’s calculation, but the calculator does not model individual fees or every expense. Check the lender’s disclosure for its definitions and itemized figures.

Why can a longer loan term have a lower monthly payment but more interest?
Repayment is divided across more monthly installments, which can reduce each payment. Interest accrues over a longer schedule, so the total interest can rise even when the payment falls.

Can I compare loans with different amounts?
Yes, but the result combines differences in principal with differences in APR and term. To isolate the effect of financing terms, compare the offers using the same principal, then review the actual offers separately.

Why does the lender’s payment differ from this estimate?
The lender may use different payment timing or rounding, or the disclosed amount may include taxes, insurance, fees, or other charges. Variable rates and nonstandard payment structures also are not represented by this fixed-payment formula.

Assumptions

• The rate is fixed for the entire term.
• Payments are equal, monthly, and made at the end of each month.
• Interest compounds monthly at APR ÷ 12.
• Fees, taxes, insurance, PMI, escrow, and other charges are not included.

This result is an estimate, and the lender’s disclosure gives the exact figures.

Related

• Loan Comparison Spreadsheet: Compare Payments and Costs
• Loan Comparison Search: Compare Payments and Interest
• Loan Comparison Sites: How They Work and What to Check

in p1 | Loan 1 amount | $ | 20000 | 1 | 100000000
in apr1 | Loan 1 APR | % | 8 | 0.01 | 100
in yrs1 | Loan 1 term | years | 5 | 0.0833 | 50
in p2 | Loan 2 amount | $ | 20000 | 1 | 100000000
in apr2 | Loan 2 APR | % | 7.5 | 0.01 | 100
in yrs2 | Loan 2 term | years | 5 | 0.0833 | 50
in p3 | Loan 3 amount | $ | 20000 | 1 | 100000000
in apr3 | Loan 3 APR | % | 8.5 | 0.01 | 100
in yrs3 | Loan 3 term | years | 5 | 0.0833 | 50
out pay1 | Loan 1 monthly payment | $ | round(p1 * (apr1 / 1200) / (1 - (1 + apr1 / 1200) ^ -(yrs1 * 12)), 2) | 2
out int1 | Loan 1 total interest | $ | pay1 * yrs1 * 12 - p1 | 2
out pay2 | Loan 2 monthly payment | $ | round(p2 * (apr2 / 1200) / (1 - (1 + apr2 / 1200) ^ -(yrs2 * 12)), 2) | 2
out int2 | Loan 2 total interest | $ | pay2 * yrs2 * 12 - p2 | 2