Don't just compare monthly payments when trying to determine which loan delivers the most value. This calculator will help you sift through the monthly payments, fees and other costs connected with a new loan. By conducting a side-by-side comparison, the calculator picks the loan that works best for you. Simply click on the "View Report" button to see the detailed results.

Loan amount

The total dollar amount of the loan (i.e., how much you're getting).

Interest rate

Shows how interest on the loan is calculated.

Loan term

This is the length of time until final repayment of the loan. For mortgages, the most popular terms are 15 and 30 years. When "balloon payments" are involved, the loan term shortens to pay off the loan sooner. Example: a loan with a 5-year term may have the same monthly payments as a 30-year loan; but, at the end of the 5-year term, the borrower must make one big "balloon payment" to pay off the balance of the loan.

Amortization

This just means eliminating a debt, or paying off your loan. The rate of amortization is the number of years the loan spans. If your loan is amortized for a longer period than your loan term, then you'll have a balloon payment, like the one described under "Loan term."

Origination fee

A fee charged by a lender for processing a loan application. This is expressed as a percentage of the loan amount. So, if a 1% origination fee on a $100,000 loan would come to $1,000. This fee is usually included in the calculation of the Annual Percentage Rate on the loan.

Commitment fee

A charge by a lender for holding credit available for a borrower. This fee is also figured as part of the APR, and is an upfront fee.

Other fees

These are additional fees that are part of the APR calculation. Usually, these fees include prepaid interest, depending on the lender.

Other costs

These are additional costs that are part of the APR calculation.

Monthly loan payment

This is the total amount you pay each month on your loan. It includes principal and interest (PI).

Annual percentage rate (APR)

The yearly cost of a loan, including interest, insurance, origination fee, and commitment fee. It is expressed as a percentage. Since APR calculations take into account all these fees, it makes it easier for you to compare and get the best overall loan deal.

Balloon payment

When a loan is amortized over a longer period than the term of the loan (see example, under "loan term"), this is the total final payment you must make. It is made up of the total interest and principal balance due at the end of the loan term.