Loan Comparison Calculator
This calculator compares two loan offers side by side and shows which one costs less in total, including fees. Enter the amount, rate, term, and fees for each offer — the defaults are examples you can edit, not a quote.
How this calculator works
Comparing two loan offers means comparing more than the interest rate. Two offers can share a rate and still cost different amounts once fees and terms differ. This calculator amortises each offer on its own amount, rate, and term, then adds that offer's fees to the interest to give a total cost in dollars.
Formula: for each offer the payment is P × r / (1 − (1 + r)^−n), where P is the amount, r = annualRatePct ÷ 100 ÷ 12, and n is the term in months. Total paid is payment × n, total interest is total paid − P, and the total cost is total interest + fees. The calculator reports the absolute difference in total cost and in monthly payment, and names the cheaper offer.
When the rate is 0%, the payment is simply P ÷ n. A longer term lowers the monthly payment but usually raises the total interest, so an offer with the smaller payment is not always the cheaper one. That is why the verdict here is based on total cost, not on the monthly figure.
This is an illustration using the numbers you enter, not a quote. A real offer may add administration fees, optional insurance, or a different compounding convention, and the rate you are offered depends on the lender, your creditworthiness, and your province. Ask each lender for the APR and the total cost of borrowing in writing, then compare those figures side by side.
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Frequently Asked Questions
What does the comparison include?
Each offer's monthly payment, total interest, and total cost, which is the interest plus the fees you entered. The cheaper offer is the one with the lower total cost.
Why is total cost better than the monthly payment?
A longer term can lower the monthly payment while raising the interest you pay over the life of the loan. Total cost shows what you actually pay.
Should I include fees in both offers?
Yes. Enter every mandatory fee for each offer so the comparison reflects the real cost. Leave the field at 0 if an offer has no fees.
Is this a loan quote?
No. It is an illustration using the numbers you enter. Only a lender can quote a rate, and the total cost of borrowing must be disclosed before you sign.
What if the two offers have different terms?
Enter each offer's own term. The calculator amortises each one separately, so offers with different lengths are compared fairly on total cost.
Last updated: September 16, 2026 · By the Instalment.ca Editorial Team
We research Canadian lending rules and update these pages when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.
Instalment.ca is a loan matching and comparison service, not a lender.
We may earn a commission when you click or apply through our links.
This is general information, not financial, legal, or tax advice.
Rates and terms vary by lender, creditworthiness, and province. Figures shown are examples only.