ClarityHow to use this tool
- Enter amount borrowed, offer a annual interest rate, offer a term in months, offer a upfront fees, offer b annual interest rate, offer b term in months, offer b upfront fees.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Amount borrowed | Numeric value. Unit: money. Zero or positive. | 20000 |
| Offer A annual interest rate | Numeric value. Unit: %. Zero or positive. Maximum: 100. | 6 |
| Offer A term in months | Whole numbers only. Minimum: 1. Maximum: 600. | 48 |
| Offer A upfront fees | Numeric value. Unit: money. Zero or positive. | 500 |
| Offer B annual interest rate | Numeric value. Unit: %. Zero or positive. Maximum: 100. | 7 |
| Offer B term in months | Whole numbers only. Minimum: 1. Maximum: 600. | 60 |
| Offer B upfront fees | Numeric value. Unit: money. Zero or positive. | 100 |
Result for these sample inputs
815.810362 currency units
- A monthly payment
- 469.700581
- B monthly payment
- 396.023971
- A payments plus fees
- 23045.6279
- B payments plus fees
- 23861.4382
Total cost of B minus A. Compare affordability and term length as well as this difference.
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
For each offer, calculate its amortizing payment. Total cost = payment × months + upfront fees. Difference = offer B total cost − offer A total cost; a positive difference means A has the lower undiscounted total.
Using amount borrowed = 20000 money, offer a annual interest rate = 6 %, offer a term in months = 48, offer a upfront fees = 500 money, offer b annual interest rate = 7 %, offer b term in months = 60, offer b upfront fees = 100 money, the result is 815.810362 currency. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Fixed rates, month-end payments, upfront fees paid separately. Excludes taxes, prepayment, insurance and time value of money. A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.
Methodology maintained by ClarityKit. How these tools are built and checked.