Use comparable disclosures
Do not mix APR with nominal rate.
The monthly payment model needs the contractual interest rate. Compare lender-disclosed APR with APR and confirm which fees it includes.
Loan offer comparison
Loan Comparison Calculator
Compare two fixed-rate loan offers using the same amount borrowed, with separate rates, terms and upfront fees.
Monthly payment difference—
Borrowing-cost difference—
Lower monthly payment—
Rate, term and fee
Monthly payment—
Total interest—
Interest plus upfront fee—
Rate, term and fee
Monthly payment—
Total interest—
Interest plus upfront fee—
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Payment formula
Each offer uses equal monthly instalments at the entered nominal rate. Upfront fees are added to borrowing cost but are not financed or included in the payment.
Comparison
Lower payment and lower total cost can point to different offers.
A longer term often reduces the monthly payment while increasing the time interest accrues.
Source
Rate, APR, term and amount financed all matter.
The CFPB advises comparing loan offers using APR, interest rate, loan length and total amount financed.