Loan Cost Comparison Calculator
Compare multiple loan options side-by-side. Calculate total interest, monthly payments, and total repayment amounts for different loan terms and rates.
Step 1: Loan Details
Loan Comparison Formula
Monthly Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
Total Cost = Monthly Payment × n
Total Interest = Total Cost – Principal
Step 2: Loan Options
Typical Interest Rates
Excellent Credit: 3-5%
Good Credit: 5-8%
Average Credit: 8-12%
Poor Credit: 12-20%+
Loan Cost Comparison Results
Total Savings with Best Loan
Loan Option 1
Loan Option 2
Loan Option 3 (Best)
Detailed Loan Comparison
| Loan Option | Interest Rate | Monthly Payment | Total Interest | Total Cost |
|---|
Loan Payment Formula
Monthly Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
Where:
• P = Principal loan amount
• r = Monthly interest rate (annual rate ÷ 12)
• n = Number of months (loan term)
Total Calculations:
• Total Cost = Monthly Payment × n
• Total Interest = Total Cost – Principal
• APR = Annual Percentage Rate (includes fees)
Example Calculation
Example: £25,000 loan at 5% APR for 5 years
Principal: £25,000
Annual Rate: 5%
Monthly Rate: 0.05 ÷ 12 = 0.0041667
Term: 60 months
Calculation:
Monthly Payment = 25000 × [0.0041667(1+0.0041667)⁶⁰] / [(1+0.0041667)⁶⁰ – 1]
= £471.78 per month
Total Cost = £471.78 × 60 = £28,306.80
Total Interest = £28,306.80 – £25,000 = £3,306.80
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