Source: https://awesomecalcs.com/loan-comparison-calculator Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above. --- # Loan Comparison Calculator > Compare up to 4 loan offers side by side and see which is cheapest once fees are included. Interactive calculator: https://awesomecalcs.com/loan-comparison-calculator ## How this is calculated Compares 2-4 competing loan offers by computing each one's EMI, total interest, and total cost of loan (interest + processing fee + other one-time charges), then recommends whichever offer has the lowest total cost, not just the lowest rate or lowest EMI. **Formula:** `Per offer: EMI = computeEMI(P, rate, n); totalInterest = EMI x n - P; processingFeeAmount = feeType === "percent" ? P x feeValue / 100 : feeValue; totalCostOfLoan = totalInterest + processingFeeAmount + otherCharges` **Variables:** - `P`: Loan amount for this offer, in INR (can differ between offers) - `rate`: Annual interest rate for this offer, as a percentage - `n`: Tenure for this offer, in months Reference: Matches the total-cost-of-loan comparison methodology used by BankBazaar and Paisabazaar loan comparison tools. ## Assumptions - Compares offers exactly as entered, including different loan amounts, tenures, or fee structures; it does not normalize amounts to a common baseline. - Does not model prepayment, foreclosure charges, or rate changes over the tenure (e.g. floating-rate resets); it compares the offers as quoted today. ## Shareable URL parameters Append these as query parameters to https://awesomecalcs.com/loan-comparison-calculator to deep-link directly into a pre-filled, pre-calculated result page. Values outside the given range are clamped, not rejected. - `offers` (number (2 to 4 count), default `2`): Number of offers being compared, from 2 to 4. - `l{n}Amount` (number (100000 to 20000000 INR), default `2500000`): Loan amount for offer index n (0-indexed, e.g. l0Amount, l1Amount, up to offers-1). - `l{n}Rate` (number (5 to 20 %), default `9`): Annual interest rate for offer index n. - `l{n}Months` (number (6 to 360 months), default `180`): Tenure for offer index n. - `l{n}FeeType` (string ('amount' | 'percent'), default `percent`): Whether l{n}FeeValue is a flat amount or a percentage of l{n}Amount. - `l{n}FeeValue` (number (0 to 200000 % or INR, per l{n}FeeType), default `0.5`): Processing fee for offer index n. - `l{n}Other` (number (0 to 200000 INR), default `0`): Other one-time charges for offer index n. Example: https://awesomecalcs.com/loan-comparison-calculator?offers=2&l0Amount=2500000&l0Rate=9&l0Months=180&l0FeeType=percent&l0FeeValue=0.5&l0Other=5000&l1Amount=2500000&l1Rate=8.75&l1Months=180&l1FeeType=amount&l1FeeValue=30000&l1Other=5000 ## Example scenarios - [Loan Comparison: 2 Lenders, 25 Lakh Loan](https://awesomecalcs.com/llms/loan-comparison-calculator/2-lender-offers-2500000) - [Loan Comparison: 3 Lenders, Low-Rate High-Fee Trap](https://awesomecalcs.com/llms/loan-comparison-calculator/3-lender-offers-low-rate-high-fee-trap) - [Loan Comparison: 2 Lenders, Different Approved Amounts](https://awesomecalcs.com/llms/loan-comparison-calculator/2-lender-offers-different-amounts) - [Loan Comparison: 4 Lenders, 10 Lakh Loan](https://awesomecalcs.com/llms/loan-comparison-calculator/4-lender-offers-1000000) - [Loan Comparison: When the Lowest EMI Is Not the Best Deal](https://awesomecalcs.com/llms/loan-comparison-calculator/2-lender-offers-lowest-emi-not-recommended) ## Frequently asked questions ### Why compare "total cost of loan" instead of just the interest rate? The advertised rate only tells you the interest cost, not the processing fee, documentation charges, or any bundled insurance a lender adds on top. Two offers with similar rates can end up costing very differently once these one-time charges are included, so total cost of loan is a fairer way to compare. ### Can the offer with the lowest EMI still be the worse deal? Yes, and this is one of the most common traps. A lender might quote a lower EMI by approving a slightly smaller loan amount, stretching the tenure, or simply offering a lower rate while charging a much higher processing fee. Always check the total cost of loan, not just the monthly number. ### Why would I compare offers with different loan amounts? Lenders sometimes approve less than what you asked for based on their own risk assessment of your income and credit profile. Comparing the actual offers on the table, even if the amounts differ, is more useful than comparing on rate alone, since you still need to fund the same purchase. ### What counts as "other charges" in this calculator? This covers one-time costs beyond the processing fee: documentation charges, legal or valuation fees, and any insurance the lender bundles into the loan (sometimes required, sometimes optional but pushed hard). Ask your lender for an itemized fee breakdown before signing, since these are often not shown upfront in the advertised rate. ### Should I always go with the recommended lowest-total-cost offer? Usually, but not always. Total cost of loan is the best single number for comparing pure cost, but also weigh service quality, disbursal speed, and prepayment flexibility, since a slightly costlier lender with no prepayment penalty could save you more later if you plan to prepay.