Loan Cost Comparison Calculator
Compare various loan terms side-by-side to understand the long-term impact of interest rates and repayment periods. This professional tool calculates monthly payments, total interest, and the overall cost of borrowing across 5, 10, 15, 20, and 30-year terms instantly.
Comparison Summary
| Term (Years) | Monthly Payment | Total Interest | Total Cost |
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Total Interest Cost Visualization
How to Compare Loan Costs Effectively
Understanding the true cost of a loan goes beyond just looking at the monthly payment. While a 30-year mortgage might offer the lowest monthly commitment, the total interest paid over three decades can often exceed the original loan amount. This calculator helps you visualize those trade-offs in real-time.
The Mathematics of Amortization
Loans are typically paid back through amortization, where your fixed payment is split between interest and principal. In the early years, a larger portion of your payment goes toward interest. As the balance decreases, more of your payment is applied to the principal.
Why Repayment Terms Matter
Short-term loans (e.g., 5 or 10 years) usually come with lower interest rates but significantly higher monthly payments. Long-term loans (30 years) provide flexibility and lower monthly strain but result in a much higher Total Cost of Borrowing.
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