Home Loan Comparison Calculator

Compare two home loans by repayment, interest, and total cost

A home loan can look “cheaper” in one place and more expensive in another. A lower interest rate may still cost more if the fees are higher, if the term is longer, or if you plan to pay extra each month. This home loan comparison calculator is designed to put two loans next to each other using the same set of outputs so you can see the trade-offs clearly.

To use it, enter the loan amount, annual interest rate, and term for Loan A and Loan B. Then add optional once-off fees and monthly service fees if you know them. If you plan to pay extra each month (above the required repayment), enter that as an extra monthly payment. The calculator will estimate each loan’s monthly repayment, total interest paid, total fees, and an overall “total cost” figure so you can compare like for like.

The results are meant to support decisions, not replace a bank quote. Real loan statements depend on daily interest calculations, changing interest rates, insurance, and your payment timing. Still, a consistent estimate is extremely useful for comparing options before you lock yourself into a long-term commitment.

Assumptions and how to use this calculator

• Interest is modeled using a standard monthly-rate approach. Some lenders calculate interest daily, so real totals can differ slightly.
• For repayment loans, the “monthly repayment” is based on amortization over the full term at a constant interest rate.
• Extra monthly payments (if entered) are assumed to be paid every month and applied to reduce principal for repayment loans, which can shorten the payoff time and reduce interest.
• Interest-only loans are modeled as interest-only payments during the term with the full principal still outstanding at the end (a balloon amount).
• Fees entered here are simplified into once-off fees and monthly fees. Other costs such as insurance, taxes, transfer costs, or penalties are not included unless you add them as fees.

Common questions

Does a lower interest rate always mean a cheaper loan?

No. A lower rate often helps, but fees, term length, and repayment structure can change the total cost. A loan with a slightly higher rate can still be cheaper overall if it has lower fees or if you repay it faster with extra payments.

What does “total cost” mean in this calculator?

Total cost is an estimate of all money paid over the loan’s life: principal repaid (or still due at the end for interest-only), plus total interest, plus once-off fees, plus monthly fees. It is a simplified comparison number you can use to see which option is likely to cost less.

How do extra monthly payments affect the comparison?

For repayment loans, extra payments reduce the outstanding balance faster, which typically lowers total interest and shortens the payoff time. This can flip the comparison if one loan has a better rate but you intend to repay aggressively. For interest-only loans, extra payments do not fit the usual structure, so this calculator treats extra payments as most relevant for repayment loans.

What if I do not know the exact fees?

Leave fees blank or set them to zero and compare the loans based on repayment and interest only. Then, when you get quotes, update the once-off and monthly fees. Even rough fee estimates can be useful for judging whether a “low rate” offer is being offset elsewhere.

When does this calculator not apply well?

If your interest rate is variable and you expect it to change significantly, any fixed-rate estimate will be imperfect. It is also less accurate for products with complex structures like step-up rates, redraw facilities with irregular payments, or loans with large planned lump-sum repayments. In those cases, use this tool to get a baseline comparison, then confirm with lender amortization schedules.