Comprehensive Guide
Learn more in our Loans & Mortgage Guide.
How it works
loan comparison shopping worksheet takes your inputs and produces offer 1: total cost, offer 2: total cost, lower cost offer, total cost difference. Compare loan offers side by side using total cost, APR, closing costs, and monthly payment — the right way. You provide 8 inputs: Offer 1: loan amount (currency, in dollars) (default: 250000 dollars); Offer 1: interest rate (%) (percent, in percent) (default: 6.5 percent); Offer 1: closing fees ($) (currency, in dollars) (default: 3000 dollars); Offer 1: term (years) (number) (default: 30); Offer 2: loan amount (currency, in dollars) (default: 250000 dollars); Offer 2: interest rate (%) (percent, in percent) (default: 6.25 percent); Offer 2: closing fees ($) (currency, in dollars) (default: 5000 dollars); Offer 2: term (years) (number) (default: 30). The calculator returns 4 outputs: Offer 1: total cost (the primary result); Offer 2: total cost (a secondary output); Lower cost offer (a secondary output); Total cost difference (a secondary output). Loans and mortgages are amortized instruments where the split between interest and principal shifts every month. Understanding the total cost of borrowing — not just the monthly payment — is the difference between a sustainable debt load and one that erodes your net worth over time. This calculator reveals the full amortization picture. The underlying formula: Total cost = (Monthly payment × 12 × years) + Closing fees | APR includes fees in the effective rate. With the default values, offer 1: total cost is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Total cost = (Monthly payment × 12 × years) + Closing fees | APR includes fees in the effective rate.
Tips
- Always compare total cost, not just interest rate or monthly payment.
- Get at least 3 loan quotes for the best comparison.
- Negotiate closing fees — they are often negotiable.
- A lower rate with higher fees may cost more than a higher rate with lower fees.
Frequently asked questions
What is the difference between interest rate and APR?
Interest rate is the cost of borrowing the principal. APR includes interest rate plus closing fees, points, and other charges, expressed as a single rate. APR is always higher than the interest rate and provides a more complete picture.
How many loan quotes should I get?
At least 3, ideally 5. All mortgage inquiries within a 45-day window count as one hard pull for credit scoring. Shop with different types: big bank, local credit union, online lender, and mortgage broker.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.