Personal Finance
Monthly Payment Comparison Calculator
Two loans or finance deals: amount, rate and term. See monthly payment and total interest.
Which finance deal costs less?
A lower monthly payment can mean a longer term and more interest overall. Compare total paid, not just the monthly figure, when choosing between finance offers on cars, appliances or personal loans. Arrangement fees and compulsory insurance add-ons belong in the total cost of each option. This calculator lines up payments and totals so the ‘cheap monthly’ trap is easier to spot. It is not a credit offer, ignores early repayment charges unless you add them, and is not regulated financial advice. For mortgages specifically see mortgage overpayment. Household budgeting trade-offs can sit beside subscription cost when many small commitments stack. Balloon payments and optional final instalments deserve a hard look at the total cash path, not only the teasing monthly figure. PCP-style car finance needs the same discipline: compare totals and conditions, then read the small print on mileage caps. If an offer requires buying insurance add-ons, include those premiums in the comparison total.
Worked example
Offer A: £220 a month for 36 months = £7,920 total. Offer B: £175 a month for 48 months = £8,400 total. B looks cheaper each month but costs £480 more overall before fees. Add a £250 arrangement fee to B and the gap widens further — always compare cash out the door.
Limits and assumptions
Simple multiplication of stated payments; compounding schedules and variable rates need lender illustrations. Affordability checks and credit decisions are separate. Not FCA-regulated advice.
Frequently asked questions
Why can a lower monthly payment cost more?
Longer terms accrue more interest even when each instalment looks smaller.
Should I include fees in the comparison?
Yes — add arrangement or product fees into the total cost of each option.
Is this a loan approval tool?
No. Lenders assess affordability and credit separately. Use this only to compare maths on stated offers.
What about 0% finance?
Still compare totals and any deferred-interest traps if you miss a payment — read the agreement.
How do deposits change the picture?
Subtract the deposit from the amount financed, then compare remaining payment totals fairly.