Compare two loan offers
Rate, term, fees: which loan offer really costs less?
How it works
For each offer: payment = P × r / (1 − (1 + r)^−n), total cost = payment × n − P + fees. The cheapest offer has the lowest total cost.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Amount borrowed20000
- Offer A: annual rate (%)4.2
- Offer A: term (years)5
- Offer A: fees (arrangement, total insurance)300
- Offer B: annual rate (%)3.9
- Offer B: term (years)6
- Offer B: fees450
you get:
- Cheapest offerOffer A (saves €405.21)
- Offer A: monthly payment€370.14 × 60
- Offer A: total cost of credit€2,508.30
- Offer B: monthly payment€311.99 × 72
Frequently asked questions
How does the “Compare two loan offers” tool work?
For each offer: payment = P × r / (1 − (1 + r)^−n), total cost = payment × n − P + fees. The cheapest offer has the lowest total cost.
What do I need to enter?
Just fill in: amount borrowed, offer a: annual rate, offer a: term, offer a: fees, offer b: annual rate, offer b: term. The result updates as you type.
Can you give an example?
Amount borrowed: 20000; Offer A: annual rate (%): 4.2; Offer A: term (years): 5; Offer A: fees (arrangement, total insurance): 300; Offer B: annual rate (%): 3.9 → Cheapest offer: Offer A (saves €405.21); Offer A: monthly payment: €370.14 × 60.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.