Comparing two home loan offers? Enter the same loan amount, then each loan’s rate, term, fees and extra repayments to see which one truly costs less over its life.
Loan Amount (same for both)
$
Loan A
%
$
$
$
Loan B
%
$
$
$
Cheaper loan over its life
Loan B is cheaper by $27,773.88
Loan A
Monthly repayment
$3,635.97
Paid off in
30 yr
Total interest
$708,948.74
Total fees
$900.00
Total cost (interest + fees)
$709,848.74
Loan B
Monthly repayment
$3,558.82
Paid off in
30 yr
Total interest
$681,174.85
Total fees
$900.00
Total cost (interest + fees)
$682,074.85
Total cost compared
PrincipalInterest + fees
Loan B wins on both the rate and the total cost. The gap of $27,774 is what you’d save over the life of the loan.
How this works: Both loans use the same amount borrowed, so the fair comparison is the cost of each loan — total interest plus fees — not the principal (which is identical). We calculate each loan's repayment from its rate and term, then apply any extra monthly repayments, which shorten the loan and cut interest. Total cost = total interest + upfront fees + ongoing fees for the years the loan runs. A lower rate isn't always cheaper once fees and term differences are included — that's exactly what this comparison reveals.
Why compare loans on total cost, not just the rate
The advertised interest rate is only part of the story. A loan with a slightly lower rate can still cost you more once upfront fees, ongoing annual fees, and the loan term are taken into account. This calculator compares two loans on their total cost — the interest you'll pay plus all fees — so you can see which is genuinely cheaper, not just which has the lower headline number.
What the comparison includes
Interest rate and term — the core of each loan's repayment and total interest.
Upfront fees — application, settlement or establishment fees charged once.
Ongoing fees — annual or account-keeping fees charged for the life of the loan.
Extra repayments — any extra you pay each month, which shortens the loan and cuts total interest. The calculator shows the faster payoff time and the interest saved.
A common surprise
It's surprisingly common for a loan with a higher interest rate but no fees to beat a lower-rate loan loaded with charges — or the reverse. Extra repayments can also change which loan wins, because they reduce the impact of a higher rate. Running both side by side is the only reliable way to know, and this calculator does it instantly and privately in your browser.
Assumptions & What's Not Included
This compares two loans side by side over their life. Keep these assumptions in mind:
Principal & interest only — each loan is compared on repayments and interest. Fees (establishment, ongoing, exit), insurance, and offset benefits are not included unless reflected in the rate you enter.
Fixed rates for the full term — both loans assume a constant interest rate. Real variable or intro/honeymoon rates will change the comparison.
Monthly compounding & monthly repayments — interest is calculated monthly with one repayment per month for both loans, on the same basis for a fair comparison.
Payment timing — repayments are treated as end-of-month, after interest accrues.
Not included — the true cost of switching (break costs, application fees, cashback offers) and differing fee structures between lenders are not modelled — only the rate, amount, and term you enter.
Comparison rates published by lenders bundle in some fees and can be a better like-for-like check. Use this tool as a guide, not a formal comparison-rate quote.
Worked example
Two $400,000 home loans over 30 years: Loan A at 6.1% with no fees, Loan B at 5.9% with a $2,000 upfront fee.
Amount borrowed
$400,000
Loan A
6.1%, no fees
Loan B
5.9% + $2,000 upfront
Loan A repayment
~$2,424 / mo
Loan B repayment
~$2,373 / mo
Cheaper over its life
Loan B, by ~$16,500
What it tells you: Even after its $2,000 upfront fee, Loan B is about $16,500 cheaper over the life of the loan, because the lower rate saves more than the fee costs. A lower rate isn’t always the winner once fees and term differ — which is exactly what this comparison reveals.
Frequently Asked Questions
Is a lower interest rate always the cheaper loan?
No. A lower rate can be outweighed by higher upfront or ongoing fees, or by a longer term. The only reliable comparison is total cost — interest plus all fees over the life of the loan — which is what this calculator works out for both loans.
How do extra repayments affect the comparison?
Extra monthly repayments reduce your loan balance faster, so you pay less interest and clear the loan sooner. The calculator applies your extra repayments to each loan and shows the shorter payoff time and the lower total interest that results.
Should I include fees when comparing home loans?
Yes. Fees can add thousands over the life of a loan and are a major reason a seemingly cheaper rate ends up costing more. This calculator lets you enter both upfront and ongoing fees for each loan so the comparison reflects the real cost.
Is this calculator private? Do you store my data?
Yes, it is completely private. Every calculation runs locally in your browser, so the figures you enter are never sent to a server, never stored, and never shared. There are no accounts and no sign-up.
CalcEezy is a free collection of financial calculators built to help you make quick, informed decisions about loans, savings, and investments.
Every calculation runs entirely in your browser using standard financial formulas — the same ones used in spreadsheet software. Nothing is sent to a server, so your numbers stay completely private and the tools even work offline.
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