Interest Rate Compare Calculator

Compare two loans side by side to see which costs less in total.

Formula

How the calculation works

Both loans are run through the same EMI formula, so the two monthly figures are directly comparable.

Total interest is the EMI multiplied by the months minus the principal, which is the honest measure of what each loan costs.

The cheaper loan is the one with the lower total interest, which is not always the one with the lower rate.

Common mistakes

• Choosing on the monthly EMI alone: a smaller EMI spread over many more months can cost far more in total.
• Overlooking processing fees and insurance, which can wipe out the advantage of a slightly lower rate.

When to use it

• Use it when two lenders quote different rates and terms and you want the cheaper deal overall.
• It is not a credit check; being offered the rate at all depends on your profile.

Worked example

5,000,000 over 240 months at 9% versus 8.5% differs by 1,595 a month and 382,833 in total interest.

Common questions

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Last updated: 2026-10-04