A loan comparison needs more than two quoted monthly payments. Start with the same amount borrowed, then record the nominal rate, payment term and upfront fees. The worksheet makes those assumptions visible; the contract remains the source for actual terms.
Keep the comparison consistent
Use the same principal and currency for both offers. Enter fees paid upfront separately. If fees are financed, the balance changes and the offers are no longer identical-principal cases. Do not substitute a regulatory APR for the nominal rate without understanding what fees and timing that APR includes.
Read payment and total cost together
A longer term spreads principal across more payments, so it can reduce the monthly bill while raising interest. The comparison shows ordinary payment, interest, fees and total paid. Monthly interest is rounded and the final payment clears the balance; a lender may use different day-count rules.
Check the offer outside the calculator
Look for early repayment conditions, variable-rate resets, insurance and late charges. These are not inferred from a percentage. Download the comparison, preserve the quote and inspect the amortization schedule if you need monthly balances. The lower modeled cost is not an assessment of lender suitability.
Worked example
Scroll the table horizontally on small screens to see every column.
| Offer | Principal | Term | Fee | Total |
|---|---|---|---|---|
| A | 1,200 | 12 months | 0 | 1,200 |
| B | 1,200 | 24 months | 60 | 1,260 |
B lowers the payment from 100 to 50 but adds 60 in fees. Zero interest makes the distinction easy to check.
Sources and checks
- https://www.consumerfinance.gov/owning-a-home/compare/compare-loan-estimates/ ↗
- https://openstax.org/books/principles-finance-2e/pages/8-3-loan-amortization ↗
Examples are illustrative and can be checked with the linked tools. Read each tool’s assumptions before applying its result. How we verify methods.