Loan comparison calculator
Two loans with the same rate can cost very different amounts once fees and terms are included.
Cheaper option by total cost
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How this calculator works
- Calculate the monthly payment and total repaid for each offer.
- Add each offer's fees to its interest to get the total cost of credit.
- Compare the two totals to find which offer costs less overall.
- Check the monthly payments as well, since a cheaper total may still mean a higher payment.
Formula: Total cost = (monthly payment x number of payments - principal) + fees, for each offer
Frequently asked questions
What should I compare between two loans?
Compare the total cost of credit — all interest plus all fees — and the monthly payment. A lower rate with a longer term can still cost more overall.
Does a lower monthly payment mean a better loan?
Not necessarily. Stretching the term lowers the payment but increases the total interest. Judge the offer on total cost, not the payment alone.
Should I include insurance in the comparison?
Yes. If insurance is mandatory or bundled, it is part of the cost of credit. Include it in the fees for a fair comparison.
Sources
- Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
- Criminal Code, s. 347 — Criminal interest rate — Government of Canada — Justice Laws
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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Check what you qualify for with our Canadian lending partners. No obligation to accept any offer.
Compare loan optionsAffiliate disclosure: Promissory.ca is a free comparison and referral service. We may receive compensation from lending partners when you click a partner link or submit an application. This compensation does not affect the information or comparisons we publish.