Loan Comparison Calculator
Compare two loan offers side by side and find the genuinely cheaper one. A lower interest rate does not always mean a cheaper loan — tenure matters just as much. Enter the amount, interest rate, and tenure for each loan to see both EMIs, the total interest each one costs, and a clear verdict on which loan saves you more.
How to Use the Loan Comparison Calculator
- Enter the amount, rate, and tenure for Loan A — for example, a bank’s offer.
- Enter the same three figures for Loan B — perhaps a competing lender or a different tenure.
- Press Compare to see both EMIs and both total-interest figures.
- Read the verdict — it tells you which loan costs less in total interest and by exactly how much.
Practical example
A $500,000 loan at 9% for 5 years has an EMI of about $10,379 and total interest of $122,751. The same amount at 8.5% for 7 years has a lower EMI of about $7,918 but total interest of $165,132. The 5-year loan is cheaper by roughly $42,382 in interest despite the higher rate and higher EMI — because two extra years of interest dwarf the half-point rate advantage. This is the classic trap the calculator is designed to expose: never judge a loan by its EMI or rate alone.
Key features and benefits
- Total-cost verdict: looks past the EMI to the interest you actually pay over the full tenure.
- Zero-rate safe: handles 0% interest loans without division errors.
- Standard formula: both loans use the reducing-balance EMI formula lenders use.
- Instant comparison: change any input and re-compare in one click.
- Private: nothing leaves your browser.
Limitations
This compares standard reducing-balance loans with fixed rates and equal monthly payments. It does not account for processing fees, prepayment or foreclosure penalties, floating-rate changes during the tenure, moratorium periods, or tax benefits on interest (such as home-loan deductions). Always read the loan agreement and the fine print on charges for the full cost picture.