Compare the whole cost, not only the rate
Two offers can look alike but cost very different amounts. This tool works out the monthly instalment for both loans, adds up everything you will repay, subtracts the amount borrowed to get the interest, and adds any upfront fees to give the total cost. The difference between the two totals is shown at the top.
What to compare
- Monthly instalment: can your budget handle it?
- Total interest: what the loan really costs.
- Fees: one-off charges that change the winner.
For a detailed repayment schedule of a single loan use the EMI calculator. To plan the savings for a down payment try the savings goal calculator.
Frequently asked questions
How does the calculator work out the instalment?
It uses the standard reducing-balance formula: instalment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the monthly rate and n the number of months.
Is the lower rate always cheaper?
No. A longer loan with a lower rate can cost more in total than a shorter loan with a higher rate, because you pay interest for more months. Always compare total cost.
What are upfront fees?
Processing, documentation or insurance charges paid at the start. They are added to the total cost so the comparison is fair.
Do banks quote the same kind of rate?
Not always. Some quote a flat rate on the full amount, others a reducing-balance rate. A flat rate looks lower but costs more. Ask for the reducing-balance (APR) figure, or use the EMI calculator's flat-rate mode to convert.
Can I compare a loan with a Murabaha or lease offer?
You can enter the total profit as a rate for comparison, but Islamic finance contracts are structured differently, so confirm the terms with the bank.