Compare up to three business financing offers side by side — by monthly payment, APR, fees, total interest, and effective total cost. Surfaces the lowest-cost, lowest-payment, and shortest-payoff options automatically.
Frequently Asked Questions
How does this loan comparison tool work?
Enter loan amount, APR, term, and fees for up to three offers. The tool calculates monthly payment, total interest, total repayment, and effective total cost, then highlights the best option in each category.
What's the difference between APR and interest rate?
Interest rate is the annual cost of borrowing principal. APR includes interest plus most lender fees as an annual rate, making it the better apples-to-apples comparison.
Why is 'effective total cost' more important than monthly payment?
Monthly payment alone hides longer terms that inflate total interest. Effective total cost (total repayment + fees) shows what financing actually costs over the life of the loan.
How do origination fees affect the comparison?
Origination fees (1–5% of loan amount) are charged upfront and reduce net proceeds. A loan with a lower APR but a 5% origination fee can cost more than a loan with a slightly higher APR and no fee.
Can I compare an MCA against a term loan here?
Not directly — MCAs use factor rate, not APR. Use the MCA calculator to convert factor rate to APR-equivalent, then plug that into this comparison.
Should I always pick the lowest total cost option?
Not necessarily. If the lowest-cost option's payment strains cash flow, a slightly more expensive option with lower payments may be more sustainable.
How do prepayment penalties change the math?
Some lenders charge 1–5% in years 1–3, which can erase interest savings from a shorter term. This calculator doesn't model penalties — confirm with each lender.
What if the offers have different funding speeds?
If you need capital this week, a slightly more expensive offer that funds in 2 days may beat a cheaper offer that takes 30 days.
How accurate are these calculations?
Calculations use standard amortizing-loan math and are accurate for fixed-rate term loans. Actual offers may include additional fees not captured here — always review final disclosures.
Where can I learn more about choosing the right loan?
Read the guides on how business financing repayment works, line of credit vs. term loan, and what providers look for.