MortgageComparisonTools

Mortgage Comparison Calculator

Compare two mortgage offers on payment, total interest, fees and APR, and see which wins on cost and which on cash flow.

Last reviewed

·

Free · No sign-up · Runs in your browser

Two mortgage offers rarely differ in only one dimension. One has a lower rate and higher fees; the other has a shorter term and a higher payment. Comparing them on any single number produces a confident answer to the wrong question.

This calculator reports both dimensions: which offer costs less in total, and which leaves more cash each month. Those are frequently different offers, and knowing which one you actually need is the decision.

Your numbers

Results update as you type. Nothing is sent anywhere.

Offer A
Offer B

Result

Cheaper overall

Offer B

Total difference

$223,092

Lower monthly payment
Offer A
Offer A payment
$1,919
Offer B payment
$2,598
Payment difference
$679
Offer A total interest
$370,682
Offer B total interest
$147,590
Offer A APR
6.09%
Offer B APR
5.54%

A lower monthly payment and a lower total cost are often different offers. The comparison shows both so the trade-off is visible.

APR here folds the fees you entered into the borrowing cost. Lenders may include a different set of fees in their disclosed APR.

Offer comparison

MetricOffer AOffer B
Monthly payment$1,918.56$2,597.72
Term (months)360180
Total interest$370,681.6$147,589.6
Fees$3,000$3,000
Total cost$693,681.6$470,589.6
APR6.0881%5.5449%

How to use the mortgage comparison calculator

  1. Enter the loan amount, rate, term and fees for the first offer.
  2. Enter the same for the second - the amounts do not have to match.
  3. Compare the total cost row and the monthly payment row separately.
  4. Use the APR figures to see the effect of the fees.

What people use this for

  • Choosing between two lender offers.
  • Comparing a fifteen-year term against a thirty-year one.
  • Testing whether paying higher fees for a lower rate is worthwhile.
  • Deciding between a lower payment and a lower total cost.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

30-year against 15-year

$320,000 at 6% over 30 years with $3,000 of fees, against the same amount at 5.4% over 15 years with $3,000 of fees.

Cheaper overall
Offer B
Total difference
$223,092
Lower monthly payment
Offer A

Lower rate with higher fees

The same term on both, with one offer trading a lower rate for considerably higher fees.

Cheaper overall
Offer B
Offer A APR
6.29%
Offer B APR
6.03%

Lower payment and lower cost are different questions

A longer term reduces the payment and increases total interest, sometimes by more than the price of a car. A shorter term does the reverse. Neither is universally right - it depends on whether the constraint is monthly cash flow or lifetime cost.

For a household stretched on the payment, the thirty-year loan is the correct choice even though it costs more. For one with comfortable margin, the fifteen-year loan is usually a large and easy saving.

APR folds the fees in

The nominal rate ignores fees. APR spreads them across the term, which makes two offers with different fee structures comparable - provided both use the same term and the same fee set, which they frequently do not.

The other limitation is timing: APR assumes the loan runs its full term. Selling or refinancing early makes up-front fees far more expensive than the APR suggests, which matters because most mortgages do not run to term.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • Payments use the standard amortising formula. Total cost is payment × term in months, plus fees.
  • APR is solved by bisection so that the payment stream matches the net proceeds after fees.
  • Escrow, mortgage insurance and rate adjustments are not included - compare those separately.
  • Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

Should I compare rate or APR?

APR when the terms match and the fee sets are comparable. When terms differ, compare total cost and the payment separately, because APR cannot express both.

Is a 15-year mortgage always better?

It always costs less in total. Whether it is better depends on whether the higher payment is comfortable, and on what else the difference could be doing.

What counts as fees?

Lender fees, origination charges and points. Third-party costs such as appraisal and title are usually the same whichever lender you choose.

Does the comparison include PMI?

No. If one offer carries mortgage insurance and the other does not, add the annual PMI cost to that offer’s fees for a rough comparison.

Related calculators

More loan comparison tools on MortgageComparisonTools.

Browse all 4 tools →