Compare loan rates and terms to find the true cost of borrowing before you sign.
$
%
Yrs
Mos
Monthly Payment (EMI)
$205.17
Loan pays off in 5 years
Total Interest Paid
$2309.92
Total Principal + Interest Paid
$12309.92
Last updated: August 2026
Compare Loan Offers
When shopping for a personal, auto, or business loan, different banks and lenders will quote you different rates and terms for the same amount. This calculator makes it easy to test each offer and see exactly how much it would cost you - not just per month, but over the entire life of the loan.
Why the Interest Rate Isn't the Whole Picture
Two loans with the same monthly payment can end up costing very different amounts once you factor in the term length, and two loans with the same interest rate can differ once fees are added in. If a lender quotes you an APR rather than a plain interest rate, use the APR figure in this calculator - it more closely reflects your actual borrowing cost, since APR typically bundles in certain lender fees that a bare interest rate doesn't.
Worked Example: Comparing Two Rate Quotes
Say you're borrowing $15,000 over 4 years (48 months) and have two offers on the table: one lender quotes 7% APR, another quotes 10% APR. Here's how they compare:
7% APR
10% APR
Monthly payment
~$359
~$380
Total interest paid
~$2,247
~$3,261
Total paid
~$17,247
~$18,261
The higher-rate loan costs about $21 more per month, but roughly $1,014 more in total interest over the full 4 years. That gap is the whole reason it's worth getting quotes from more than one lender before you sign.
Avoid Predatory Lending
Some lenders advertise a low monthly payment by stretching the loan term out over many extra years, which quietly increases the total interest you pay. Always check the "Total Interest Paid" figure - not just the monthly payment - before agreeing to a loan.
What Loans Can I Use This For?
This works for any fixed-rate installment loan - personal loans, auto loans, student loans, or business term loans. If you're financing a home specifically, our Mortgage Calculator factors in property taxes, insurance, HOA fees, and PMI on top of principal and interest. If you just need a single quick monthly-payment number rather than a comparison, our Loan Payment (EMI) Calculator uses the same math in a more streamlined view.
Frequently Asked Questions
The true cost is the principal (the amount you borrowed) plus the total interest paid over the life of the loan. Our calculator displays this as "Total Principal + Interest Paid," so you're not just looking at the monthly payment in isolation.
They use the exact same math. This Loan Calculator is set up for comparing offers - re-run it with a different lender's rate or term to see how the total cost changes. Our Loan Payment (EMI) Calculator is built for a quick, single-scenario lookup when you already know your rate and just need the monthly number.
More than most people expect. On a $15,000 loan over 4 years, dropping from 10% to 7% lowers the monthly payment by about $21 but saves roughly $1,014 in total interest over the loan - which is why it's worth shopping multiple lenders even for a modest rate difference.
A shorter term raises your monthly payment but cuts the total interest you pay, since the balance is outstanding for less time. A longer term does the opposite - smaller payments, more interest overall. Run both term lengths through the calculator with your actual numbers to see the specific trade-off.
No - it calculates principal and interest based on the interest rate you enter. If a lender quotes you an APR (which bundles in certain fees), using that APR as your rate here will give you a more complete picture than using the bare interest rate alone. Separate fees like origination charges or prepayment penalties aren't included in the output.
Yes - that's the main use case for this page. Run the calculator once with the first lender's rate and term, note the monthly payment and total interest, then plug in the second lender's numbers and compare the two results side by side.
Yes, for most loan types. Lenders weigh your credit score, income, and existing debt when setting your rate - generally, a higher credit score qualifies you for a lower rate. If you're rate-shopping before applying, try a few realistic rates in the calculator to see the range of payments you might expect.
