Loan Comparison Calculator
Compare loan options side by side. Enter the rate, term, and fees from each offer to see which costs less over the life of the loan, not just which has the lowest monthly payment.
How to Use This Calculator
Enter the loan amount you are comparing across lenders or programs. For each option, fill in the interest rate, term, and any upfront fees from the lender's term sheet or offer letter.
What counts as origination fees: SBA guarantee fees (2%-3.75% depending on loan size), lender origination fees (typically 0.5%-2%), CDC processing fees on 504 loans. Enter the percentage in the origination fee field.
What counts as other fees: Appraisal fees, environmental reports, packaging fees, legal/closing costs, title search fees. Enter the total dollar amount in the other fees field.
The calculator computes the all-in cost: total of all monthly payments plus all upfront fees. This is the number that matters for comparing offers, not the monthly payment alone.
Why Monthly Payment Is Not the Right Comparison
Most borrowers compare loan offers by monthly payment. This can be misleading. A loan with a lower monthly payment often has a longer term, which means you pay more interest over the life of the loan.
Example: A $250,000 loan at 8.00% for 10 years costs $3,033/month and $113,907 in total interest. The same loan at 9.00% for 5 years costs $5,189/month but only $61,374 in total interest. The "cheaper" monthly payment costs $52,533 more.
The all-in cost captures everything: total payments, origination fees, guarantee fees, and closing costs. It is the only number that tells you what a loan actually costs.
Common Comparison Scenarios
SBA 7(a) vs. conventional bank loan: SBA loans carry a guarantee fee (2%-3.75%) but often offer longer terms and lower rates through the government guarantee. The guarantee fee increases upfront cost; the longer term and lower rate may reduce total cost. Run both to see which wins for your loan size.
Bank term loan vs. online lender: Online lenders typically charge higher rates (10%-30%+) with shorter terms (1-5 years) but fund faster and have lighter documentation requirements. A bank term loan at a lower rate over a longer term almost always costs less in total, but may take 4-8 weeks to close.
Fixed vs. variable rate: Enter the current variable rate as Option A and a fixed-rate alternative as Option B. The variable rate may look cheaper today, but consider where rates might be in 2-3 years. If your variable rate is Prime + 3.00% and Prime rises 1%, your all-in cost changes significantly.
Get lender quotes so you can compare total cost, not just monthly payment.
See If You Can Beat This DealFrequently Asked Questions
Should I always choose the loan with the lowest all-in cost?
Not necessarily. The lowest all-in cost is the financially optimal choice in isolation, but business context matters. If a lower monthly payment lets you keep operating capital that generates returns above the interest cost differential, the "more expensive" loan may produce better business outcomes. The calculator shows you the cost difference so you can make that judgment.
Why does a shorter term loan sometimes cost less even with a higher rate?
Interest accrues on the outstanding balance. A shorter term means fewer months of interest accruing and a faster-declining balance. A 5-year loan at 9% generates less total interest than a 10-year loan at 8% because the principal is paid down twice as fast. The monthly payment is higher, but the total cost is lower.
How do SBA guarantee fees affect the comparison?
SBA 7(a) guarantee fees range from 2% to 3.75% of the guaranteed portion, depending on loan size and maturity. Enter this as a percentage in the origination fee field. For a $250,000 SBA loan with a 3% guarantee fee, that adds $7,500 upfront. The longer SBA term (up to 10-25 years depending on use) may offset this fee through lower monthly payments, but run the numbers to verify.
What fees should I include in the comparison?
Include every cost you pay to obtain the loan. Origination fees, guarantee fees, packaging fees, appraisal costs, environmental assessments, legal fees, title fees, and closing costs. Do not include ongoing costs like annual review fees or prepayment penalties, as those depend on future behavior. The goal is to capture the known, committed cost of each option.
Can I compare a fixed-rate loan with a variable-rate loan?
Yes, but with a caveat. Enter the current variable rate for the comparison. The calculator will show the cost at today's rate. If rates rise or fall, the variable option's actual cost will differ. For a more conservative comparison, add 1%-2% to the current variable rate to estimate a rising-rate scenario.
Does this calculator account for tax deductions on loan interest?
No. Business loan interest is generally tax-deductible, which reduces the effective cost. The tax benefit is larger for the option with more total interest. If you want to compare after-tax costs, multiply each option's total interest by (1 minus your effective tax rate) and add back the fees. The relative ranking usually does not change, but the dollar difference narrows.
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