Comparison Rate Calculator

Comparison Rate Calculator calculator can be used to compare the total cost of different loan products by factoring in the interest rate and loan term.

Option 1

Option 2

Calculation Formula

Total Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1)

Where:
P = Principal amount
r = Monthly interest rate
n = Number of payments (loan term in months)

Calculation Results

Option 1 Total Payment: $0.00

Option 2 Total Payment: $0.00

Compare the results to determine which option is more cost-effective.

Comparison Rate Calculator Calculator Usage Guide

Learn how to use the Comparison Rate Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the loan amount, interest rate, and loan term for Option 1 in the respective fields.
  2. Enter the loan amount, interest rate, and loan term for Option 2 in the respective fields.
  3. Click the "Calculate" button to compare the total cost of both loan options.
  4. The calculator will display the total payment for each option and indicate which one is more cost-effective.

Understanding the Results

The total payment is calculated using the formula for a fixed-rate loan. The calculator compares the total payments for both options to determine which one is more cost-effective.

If the total payment for Option 1 is lower than Option 2, Option 1 is more cost-effective. If the total payment for Option 2 is lower, Option 2 is more cost-effective. If both total payments are equal, both options are equally cost-effective.