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.
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.
Common questions
Which inputs does this calculation need?
Compare two loan offers using the same borrowed amount, different rates, terms and upfront fees. Enter amount borrowed in money, offer a annual interest rate in %, offer a term in months, offer a upfront fees in money, offer b annual interest rate in %, offer b term in months, offer b upfront fees in money. The filled example is editable and is not a saved personal record.
How should I interpret the result?
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.