Compare Two Loan Offers

Compare home, car or personal loan offers from two lenders for the same amount, including rate, term and up-front fees, to see the monthly payment, total cost and effective cost rate with fees.

Payment = amount × i ÷ (1 − (1 + i)^−n), with i = yearly rate ÷ 12 and n = months. Total = payment × n + up-front fees. The effective cost rate with fees is the monthly rate at which the payments are worth the cash actually received after fees, × 12. Difference = total B − total A.

Hand check: THB 1,200,000 at 0% for 10 years costs THB 10,000 a month at both lenders. If A has no fees and B charges THB 12,000, B costs THB 12,000 more in total. THB 100,000 at 12% for one year is THB 8,884.88 a month.

Uses one average rate for the whole term; real home loans often start with promotional rates and then float, so use an average over the period you expect to keep the loan or compare several assumptions. Financed insurance, early-redemption fees and refinancing are excluded. Check the lender's actual schedule.