Loan Comparison Calculator
Compare two loan scenarios side-by-side — EMI, total cost and total interest.
TL;DR — Loan Comparison Calculator: A loan comparison calculator evaluates two reducing-balance loans on a like-for-like basis, showing the monthly EMI, total interest and total amount paid for each. Use it to compare offers from different lenders, a lower rate against a shorter tenure, or fixed-vs-variable scenarios at indicative rates.
What is the Loan Comparison Calculator?
A loan comparison calculator evaluates two reducing-balance loans on a like-for-like basis, showing the monthly EMI, total interest and total amount paid for each. Use it to compare offers from different lenders, a lower rate against a shorter tenure, or fixed-vs-variable scenarios at indicative rates.
How to use the Loan Comparison Calculator
- Enter the principal, rate and tenure for Loan A.
- Enter the principal, rate and tenure for Loan B.
- Read the EMI, total interest and total payment for each, plus the lifetime saving (the cheaper loan).
Formula
For each loan: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) Total payment = EMI × n. Total interest = total payment − P.
Identical-principal comparisons isolate the impact of rate and tenure. Different-principal comparisons should account for the additional cash needed upfront.
Worked example
Loan A: $200,000 at 6.5% for 30 years → EMI $1,264, total interest $255,089. Loan B: $200,000 at 7.0% for 15 years → EMI $1,797, total interest $123,524. Loan B costs more per month but saves $131,565 in interest.
Frequently asked questions
How do I compare two loans fairly?
Hold the principal constant and look at total interest paid plus EMI affordability. Pure EMI comparison can be misleading — longer tenures lower the EMI but raise total cost.
What is APR vs interest rate?
APR (Annual Percentage Rate) includes fees, points and certain closing costs alongside the interest rate. Two loans at the same rate but different APRs cost different amounts.
Should I prefer a lower rate or a shorter tenure?
A shorter tenure almost always saves more in interest, provided the higher EMI is affordable. A lower rate at the same tenure also saves — combine both if you can.
Does this account for prepayment?
No. Cal44 assumes the loan runs to its scheduled tenure. Prepayment can substantially change the total interest paid.
What about fees, insurance and processing charges?
Cal44 compares principal and interest only. Add fixed fees separately to each loan's total cost for a complete picture.