Compare two loan offers
A lower rate doesn’t always mean a cheaper loan. Enter both offers, fees included, to see which one costs you less.
Why fees change the answer
Many lenders charge an origination fee and subtract it from the loan before the money reaches you. Borrow $10,000 with a 5% fee and $9,500 lands in your account, but you repay all $10,000 plus interest. That makes the loan more expensive than its interest rate suggests.
The annual percentage rate, or APR, is designed to capture this. It folds the fee into a single yearly rate, which is why lenders must disclose it. This tool calculates that figure from the numbers you enter, so you can compare offers even when one lender leads with the rate and another with the APR.
Reading the results
- Cost of borrowing is everything you repay minus the cash you actually received. It’s the single best number for comparing offers of the same length.
- True APR is the better yardstick when the terms differ.
- Monthly payment tells you whether the loan fits your budget. The cheapest loan is no bargain if you can’t make the payment.
If you need a specific amount in hand, remember that a loan with a fee has to be larger to get you there. With a 5% fee, getting $10,000 means borrowing about $10,526.
For more on what to look for in the fine print, read the cheapest personal loan isn’t always the one with the lowest rate.
How to use these results. Estimates assume a fixed rate and on-time payments and are for illustration only. Your lender’s disclosures are the final word on your rate, fees and payment.