Loan Comparison Calculator
Compare two loan offers side-by-side to understand differences in monthly EMIs, total interest paid, and total lifecycle costs.
Loan Offer A
Loan Offer B
Lifecycle Cost Differences
Cumulative Payment Projections
Frequently Asked Questions
How does tenure affect the total cost of a loan?
While a longer tenure reduces your monthly EMI size, it leaves the principal unpaid for longer, resulting in massive cumulative interest outlays. Opting for the shortest comfortable tenure keeps interest payouts minimal.
What should I look for when comparing loan offers?
Never focus only on the monthly EMI. Compare the Annualized Interest Rate (reducing balance model), processing fees, administrative charges, loan-to-value ratios, and any prepayment charges or foreclosure clauses.
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How to Compare Two Loan Offers Without Getting Fooled by Marketing
"We offer the lowest rate!" — every bank's advertisement says this. But loan comparison is surprisingly tricky. The advertised interest rate is only one number. The total cost of a loan includes processing fees (0.5–2%), prepayment penalties, insurance bundling, and the effective interest rate when fees are folded in.
The correct way to compare two loans is by total interest paid over tenure, not just EMI amount or interest rate. A loan with 8.5% interest but ₹25,000 processing fee may cost more total than an 8.7% loan with zero fees, especially for shorter tenures.
For floating rate loans (most home loans in India), also consider the rate reset frequency. Some banks reset quarterly, others annually. During rising rate cycles, faster reset schedules mean your EMI or tenure increases sooner.
Three practical tips: Get the complete amortization schedule before signing any loan. Ask explicitly about prepayment penalties (many home loans now have zero prepayment charges). And request the annual percentage rate (APR), which includes fees — not just the nominal interest rate. This tool lets you input both loans' parameters and see the complete comparison before you sign.
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