Mortgage Comparison Calculator

Compare two mortgage offers side by side. See monthly payment difference, total interest saved, and which loan costs less overall. Free comparison calculator.

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Scenario 1
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Scenario 2
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Scenario 3
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Scenario 4
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Mortgage Comparison Results
📊 Compare up to 4 mortgage scenarios
MetricScenario 1Scenario 2Scenario 3Scenario 4
YearScenario 1 BalanceScenario 2 BalanceScenario 3 BalanceScenario 4 Balance

Enter loan details to view comparison schedule.

Year-by-year remaining balance comparison across all scenarios.

Powered by Techraxy | Mortgage Comparison Calculator

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Hasnain Khan

Co-Founder, Techraxy

Hasnain Khan is a digital tools developer and Co-Founder of Techraxy, a platform dedicated to building modern web-based calculators and utility tools. He focuses on tool optimization, website performance, and creating accessible user experiences across categories like automotive, finance, construction, and everyday utilities.

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Introduction to Mortgage Comparison Calculator

Not all mortgage offers are the same. One lender might offer a lower interest rate but charge higher closing costs. Another might have a slightly higher rate but lower fees. Without a side-by-side comparison, it is nearly impossible to know which loan truly saves you money. This Mortgage Comparison Calculator lets you compare two loan offers instantly. Enter the loan amount, interest rate, term, and closing costs for each offer. The calculator shows you monthly payments, total interest, and total loan cost for both options. More importantly, it tells you which loan is better for your situation and how much you will save. Whether you are comparing conventional loans, FHA vs. conventional, or different lenders, this tool helps you make a data-driven decision. Toolraxy built this calculator to help borrowers cut through confusing loan estimates and choose the best mortgage.

How to Use This Mortgage Comparison Calculator

            1. Enter Loan A details: loan amount, interest rate, and loan term

            2. Enter Loan B details: loan amount, interest rate, and loan term

            3. Add Closing Costs for each loan (optional but recommended)

            4. Enter Down Payment if comparing different down payment scenarios

            5. Click Calculate to see side-by-side results

            6. Review monthly payment difference

            7. See total interest and total cost for each loan

            8. Check which loan saves you more money

Formula Section

Standard monthly payment (for each loan):

Monthly Payment = Loan Amount × [ r(1+r)^n ] / [ (1+r)^n – 1 ]

Total interest paid (for each loan):

Total Interest = (Monthly Payment × n) – Loan Amount

Total payments (for each loan):

Total Payments = Monthly Payment × n

Total loan cost including closing costs:

Total Loan Cost = Total Payments + Closing Costs

Monthly payment difference:

Payment Difference = |Monthly Payment A – Monthly Payment B|

Interest saved:

Interest Saved = |Total Interest A – Total Interest B|

Break-even point (if closing costs differ):

Break-Even (months) = |Closing Costs A – Closing Costs B| ÷ Monthly Payment Difference

Better loan determination:

Better Loan = Loan with lower Total Loan Cost (interest + closing costs)

Where:

  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)

  • n = Total months in loan term (years × 12)

  • Closing Costs = Lender fees, points, origination fees, etc.

Real-Life Examples Section

  •  

  • Example scenario:

    InputLoan ALoan B
    Loan Amount$300,000$300,000
    Interest Rate6.25%6.5%
    Loan Term30 years30 years
    Closing Costs$5,000$1,000

    Results:

    MetricLoan ALoan B
    Monthly Payment$1,847$1,896
    Total Interest$364,000$382,000
    Total Payments$664,000$682,000
    Closing Costs$5,000$1,000
    Total Loan Cost$669,000$683,000

    Comparison:

    • Monthly payment difference: Loan A saves $49 per month

    • Total interest saved: $18,000 with Loan A

    • Break-even point: $4,000 closing cost difference ÷ $49 = 82 months (6.8 years)

    Clear takeaway: Loan A has a lower rate and saves $18,000 in interest, but costs $4,000 more upfront. You will break even in 6.8 years. If you plan to stay in the home longer than 7 years, Loan A is better. If you plan to move sooner, Loan B is better despite the higher rate.

 

 

FAQs

1. How do I compare two mortgage offers?
Compare the interest rate, monthly payment, total interest paid, and closing costs. A lower rate is not always better if closing costs are very high. This calculator does all the math for you.

2. What is more important: interest rate or closing costs?
It depends on how long you plan to stay in the home. For short-term stays (under 5 years), lower closing costs may matter more. For long-term stays, a lower interest rate usually saves more money.

3. How do I know which loan is better?
The better loan has the lower total loan cost (total payments + closing costs). This calculator automatically compares both and tells you which loan saves more money.

4. What is the break-even point in mortgage comparison?
Break-even is the number of months it takes for your monthly savings to recover higher closing costs. For example, if Loan A saves $50 per month but costs $2,000 more upfront, break-even is 40 months.

5. Should I compare APR or interest rate?
APR (Annual Percentage Rate) includes interest plus some fees, making it better for comparison than the interest rate alone. However, this calculator uses both rate and closing costs for a complete comparison.

6. Can I compare different loan terms?
Yes. You can compare a 15-year loan vs. a 30-year loan, or a 5/1 ARM vs. a 30-year fixed. Enter different loan terms for Loan A and Loan B to see the trade-offs.

7. How does down payment affect loan comparison?
A larger down payment reduces your loan amount, which lowers monthly payments and total interest. You can enter different down payments for each loan to compare scenarios.

8. Can I compare FHA vs. conventional loans?
Yes. Enter the loan amount, rate, and term for each loan type. For FHA, include upfront MIP (1.75%) in closing costs and monthly MIP in the interest rate or as an extra cost.

Disclaimer

This Mortgage Comparison Calculator is provided for educational and planning purposes only. Results are based on standard loan amortization formulas and the numbers you enter. Actual loan terms include additional factors such as property taxes, insurance, PMI, and lender-specific fees not captured here. This tool does not constitute financial or mortgage advice. Consult a licensed mortgage lender or financial advisor before making borrowing decisions. Toolraxy is not responsible for any actions taken based on these calculations.

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