A useful loan comparison begins with what you need to receive, not with the largest amount a lender will approve. Copy the actual disclosures for each offer. Record amount financed, net proceeds, interest rate, APR, term, payment, total payments, and fees. A lender’s eligibility estimate is not a funded loan.
Compare equal principal at different terms
| Illustrative fixed-rate loan | 24 months | 36 months |
|---|---|---|
| Principal | $3,000 | $3,000 |
| Annual interest rate | 12% | 12% |
| Estimated monthly payment | $141.22 | $99.64 |
| Approximate scheduled total | $3,389.29 | $3,587.15 |
The longer term reduces the monthly payment by about $41.58 but increases modeled total cost by about $197.86. Calculations use an unrounded monthly payment internally; multiplying the displayed rounded payment can differ by cents. Neither option includes fees in this example. This is a mathematical comparison, not an available offer.
Interest rate and APR are different fields
The CFPB explains that APR includes the interest rate and certain additional loan charges. Our loan calculator uses the annual interest rate for monthly amortization and excludes fees. Entering an APR that already reflects fees does not magically reproduce the lender’s disclosures or calculate net proceeds. Use APR to help compare disclosed borrowing costs, and record cash flows separately.
Questions to answer before choosing
- How much cash reaches you after any withheld fee? If you need $3,000, an advertised $3,000 loan may provide less.
- Is the payment fixed, and is the rate fixed for the entire term? Record any variable-rate conditions.
- What happens after a late or returned payment? Read the fees and default terms.
- Does the agreement impose a prepayment charge or use a structure different from this monthly amortization model?
- Can you pay it from current income while meeting essential bills and other required payments?
A comparison that can change your answer
Suppose two offers show similar payments, but one delivers less cash because a fee is withheld. You would need a separate source for that gap. Conversely, a longer-term offer may fit monthly cash flow while costing more overall. Write both facts rather than calling the lower payment the better deal.
Save disclosures with the date and the exact offer version. Recalculate if the funded amount, rate, or term changes. Keep application fees and optional add-ons separate so you can ask which items are required. Do not treat an advertisement or calculator estimate as the final repayment obligation.
Calculate a fixed-rate loan payment
Assumptions and limits
Keep affordability separate from total cost
Using the illustrated loans, suppose your household has $120 available each month for this payment after its other obligations. The roughly $141.22 payment exceeds that amount by $21.22; the roughly $99.64 payment leaves $20.36. Those arithmetic differences help identify feasibility, but they do not turn either loan into a suitable or approved offer. The longer term still costs more under the stated assumptions.
Create one worksheet row per actual offer and preserve the disclosure date. If one fee is withheld and another is financed, record the actual net proceeds rather than assuming equal principal means equal money available. Avoid committing to a loan whose apparent fit depends on leaving an unavoidable bill outside the budget.
Use the worksheet
Download the blank CSV and fill it in privately in a spreadsheet app. It is an organizational template; it contains no automatic formulas. Use account nicknames, not account numbers. Do not upload the completed file to this website.
Download this guide’s worksheet (CSV) · Browse all worksheets
Suggested fields: Offer date, Net cash needed, Loan principal, Net proceeds, Annual interest rate, Disclosed APR, Term months, Payment, Fees, Total payments.
