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Personal loan comparison

Which loan costs less after rates, terms, and upfront fees?

Your numbers

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yrs
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yrs
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Lower cost loan

Loan B

Loan A all-in cost$4,523
Loan A payment$325.39
Loan B all-in cost$4,238
Loan B payment$310.65
Cost difference$285

Tip. If the amounts differ, compare cost per dollar borrowed rather than the raw totals.

Assumptions

  • All-in cost = total interest over the full term plus any upfront fee.
  • Different terms mean different payments. A longer term can win on payment and lose on total cost.
  • Assumes both loans run to term with no early payoff and no prepayment penalty.

Explore the numbers

Examples and charts

Start with a scenario, then read the response curve to see which input actually moves the answer.

Example 1

Low rate, high fee

The classic trade: two points off the rate in exchange for a $599 origination fee.

Loan A saving vs Loan B

-$285

Example 2

Same rate, different terms

A shorter term with a higher payment against a longer one that costs more overall.

Loan A saving vs Loan B

$2,439

Example 3

Bank against credit union

A small fee difference on top of a meaningful rate gap.

Loan A saving vs Loan B

-$2,210

Sweeps loan b upfront fee from half to one and a half times your value, holding everything else fixed.

Response curve

How loan b upfront fee moves the result

Loan A saving vs Loan B

-$285

-$600-$500-$400-$300-$200-$100$0$300$400$500$600$700$800
Chart axis: Loan B upfront feeNow $599 → -$285

What this calculates

Puts two loan offers side by side on interest plus upfront fees, so a headline low rate carrying a fat origination fee does not win by accident.

How to use it

  1. Start with loan a amount and work down the form, or load an example to begin from a realistic case.
  2. Read the headline result alongside the supporting rows, which show the intermediate figures behind it.
  3. Check the assumptions. They decide what the number includes and, more importantly, what it leaves out.
  4. Sweep loan b upfront fee on the response curve to see how much it actually moves the answer.
  5. Run a cautious case as well as an optimistic one before using the estimate in a decision.

Common mistakes

  • Ignoring fees because the advertised rate looked better.
  • Comparing a fixed-rate offer to a variable one as if the rate were settled.
  • Assuming the advertised rate is the one you will be offered after underwriting.

Formula

All-in cost = total interest over the full term + upfront fee, for each offer

Inputs

  • Loan A amount
  • Loan A APR (%)
  • Loan A years (yrs)
  • Loan A upfront fee
  • Loan B amount
  • Loan B APR (%)
  • Loan B years (yrs)
  • Loan B upfront fee

FAQ

What if one loan has a prepayment penalty?

This page does not model penalties. If you expect to pay the loan off early, a penalty can wipe out a rate advantage entirely, so ask about it before comparing.

Should I compare on payment or on total cost?

Total cost tells you which loan is cheaper. Payment tells you which one you can afford. Check both, because the loan that wins on one often loses on the other.

How do I compare loans of different sizes?

Divide each all-in cost by the amount borrowed to get cost per dollar. Comparing raw totals across different principals will always favour the smaller loan.

Are these numbers financial advice?

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.

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