Loan comparison calculator: compare two loan offers

A lower interest rate is not always cheaper once fees and the loan period are counted. Enter two offers side by side to compare the EMI, interest, fees and total you pay, and see which saves more. The calculator is free, needs no sign-up, and your numbers stay on your device unless you choose to send them.

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How it works

For each offer, the EMI uses the standard formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the monthly rate and n the months. Interest = EMI × n − loan amount. Total cost = EMI × n + processing and other fees.

The cheaper offer is the one with the lower total cost, and the saving is the difference between the two totals. A longer period lowers the EMI but usually raises total interest, so the offer with the smaller EMI is not always the cheaper one. The comparison does not include prepayment charges, insurance or late fees unless you add them to the fees.

How to use it

  1. Enter the loan amount you need.
  2. Enter Offer A's interest rate, years and processing fees.
  3. Enter Offer B's rate, years and fees, then read which is cheaper.

Questions

How do I compare two loan offers?

Compare the total you will pay, not just the rate or EMI. Add processing and other fees to EMI × months for each offer. The one with the lower total is cheaper overall, if you keep the loan to the end.

Is a lower EMI always better?

No. A lower EMI often comes from a longer loan period, which means paying interest for more months. It can help your monthly cash flow but usually costs more in total over the life of the loan.

What fees should I ask the lender about?

Ask for the full list: processing fee, insurance, documentation, prepayment or foreclosure charges and late fees. Check whether you can prepay without a penalty, as this can matter more than a small rate difference.

Is this calculator free?

Yes. It is free with no sign-up and runs in your browser. Your numbers stay on your device unless you choose to copy the result, share it on WhatsApp, save a PDF or send it to us.

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Loan EMI calculatorMonthly EMI, total interest, a year-by-year schedule and how much prepaying saves.Home affordability calculatorThe home price your income can carry, the loan, EMI and cash you need.Cash runway and burn rate calculatorHow many months your cash lasts, and the month you break even.

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