Loan Comparison Calculator
The lowest monthly payment isn't always the cheapest loan. Discount points trade upfront cash for a lower rate; origination and "other" fees can wipe out a fractional rate advantage. This calculator lays two or three offers side-by-side and computes the total lifetime cost — closing costs plus all payments — so you can see which one actually saves money.
Loan A
Principal balance.
Annual rate, e.g. 6.5 for 6.5%.
1 point = 1% of loan amount, paid at closing.
Lender origination charge.
Appraisal, title, processing, etc.
Loan B
Principal balance.
Annual rate, e.g. 6.5 for 6.5%.
1 point = 1% of loan amount, paid at closing.
Lender origination charge.
Appraisal, title, processing, etc.
Loan C (optional)
Best lifetime value
Loan B
Estimated $233,476 less than the highest-cost offer over the full term.
| Metric | Loan A | Loan B ★ |
|---|---|---|
| Loan amount | $300,000 | $300,000 |
| Rate | 6.750% | 6.250% |
| Term | 30y | 15y |
| Points cost | $0 | $3,000 |
| Closing costs | $3,000 | $7,000 |
| Monthly payment | $1,946 | $2,572 |
| Total interest | $400,490 | $163,008 |
| Lifetime cost | $703,484 | $470,009 |
Free during pilot
How loans are compared
For each loan we compute four things:
- Points cost — discount points × loan amount. One point equals 1% of the loan, paid at closing in exchange for a lower rate.
- Closing costs — points + origination + other fees. Modeled as cash paid at closing (not financed).
- Monthly payment — standard amortization at the stated rate over the term.
- Lifetime cost — (monthly payment × term months) + closing costs. This is the apples-to-apples number for ranking loans you intend to hold to maturity.
Why lifetime cost beats monthly
A 15-year fixed has a higher monthly payment than a 30-year fixed at the same rate, but it carries a much lower lifetime cost. Conversely, a 30-year offer with 1 discount point can have the lowest monthly payment in the table but a higher lifetime cost than the no-points offer at a slightly higher rate. Lifetime cost surfaces those trade-offs.
Break-even on points
Discount points only pay off if you keep the loan long enough to recoup the upfront cost through monthly savings. If you expect to sell or refinance within a few years, prefer the offer with the lowest closing costs even if its rate is slightly higher.
Frequently asked questions
How do I compare two mortgage offers?
Compare total lifetime cost, not just the monthly payment. Lifetime cost is every monthly payment over the term plus all closing costs (points + origination + other fees). A lower rate bought with discount points or higher fees can still cost more over the life of the loan, so the apples-to-apples number is the total.
Is the lowest monthly payment the cheapest loan?
Not necessarily. A 30-year offer with a discount point can show the lowest monthly payment but a higher lifetime cost than a no-points offer at a slightly higher rate. A 15-year fixed has a higher monthly payment than a 30-year at the same rate but a much lower lifetime cost. Lifetime cost surfaces those trade-offs.
Are discount points worth it?
Points only pay off if you keep the loan long enough to recoup the upfront cost through monthly savings — the break-even. If you expect to sell or refinance within a few years, the offer with the lowest closing costs usually wins even at a slightly higher rate.
What does this loan comparison leave out?
It assumes you hold each loan to term and excludes taxes, insurance, and escrow. If you sell or refinance early, a loan with a lower rate-and-points combination may stop being cheapest, since you would give up the upfront cost before the lower rate paid for itself. This is an estimate, not a lending recommendation.
Estimates only — not a lending recommendation. Lifetime cost equals all monthly payments plus closing costs (points + origination + other fees). It does not include tax, insurance, or escrow. Comparison assumes you hold each loan to term; if you sell or refinance early, the loan with the lower rate-and-points combination may stop being the cheapest, since you'd give up the upfront cost long before the lower rate had paid for itself. Methodology last reviewed: May 26, 2026.