A step-by-step method for comparing lenders by total cost, not just the monthly payment.
Start with the total cost
A low monthly payment is easy to advertise. Total cost is what matters: payments added up, plus every fee, minus the amount you receive.
Compare the same details
Line up the amount, APR, term, fees, whether the rate is fixed and any penalty for early repayment. Compare at least three offers from different types of lender, such as banks, credit unions and online lenders.
A worked comparison
Offer A is $12,000 at 9% for 36 months with no fee: about $382 a month and $13,737 overall. Offer B is $12,000 at 7.5% for 60 months with a 3% fee: about $240 a month but $14,787 with the fee. B feels cheaper monthly but costs about $1,050 more.
Use soft checks first
Many lenders let you check an estimated rate without a hard credit inquiry. Do this before formal applications, and keep formal applications close together if you are comparing.
Read the small print
Look for origination fees, late fees, prepayment penalties and rules about how extra payments are applied.
Use the tool
The loan comparison calculator shows two offers side by side.
General information only, not financial, credit or legal advice. We do not offer or arrange loans. Rules and rates differ by country and lender.