FAQ

Does this calculator show current bank interest rates?

No. This tool is intentionally NOT a rate comparison or affiliate broker. We do not list current offers from banks, lenders, or marketplaces like LendingTree, Credible, or NerdWallet. You enter the offers you have ALREADY received (from your bank, credit union, or an aggregator you used yourself) and we calculate the true total cost so you can pick the cheapest one. The math is the same one regulators use — APR per the Truth in Lending Act (Regulation Z).

Why compare offers manually instead of trusting a broker site?

Broker and affiliate comparison sites are paid by lenders when you click. The lender that pays the highest commission per lead often appears first — not necessarily the cheapest one for you. By taking 2-3 personalized offers you already have in hand and running them through neutral math, you remove the conflict of interest. The cheapest APR after fees is the cheapest, regardless of what banner was on the page.

What is APR and why does it matter more than the nominal rate?

APR (Annual Percentage Rate) bundles the nominal interest rate plus mandatory fees (origination fee, application fee, monthly servicing fees, required insurance) into a single annual percentage. Two loans with the same nominal 7.99% rate can have wildly different APRs — one might be 8.4% (almost no fees), the other 11.2% (big origination fee and bundled insurance). APR is the only number that lets you compare apples to apples.

Which fees should I enter? The bank documents are confusing.

Look at the Truth in Lending Disclosure or your loan estimate. Enter: (1) Origination/processing fee — usually 0-8% of loan amount, charged once upfront, (2) Monthly servicing or administration fee — if any, often $0-15/month, (3) Mandatory insurance — credit life, payment protection, or job-loss insurance IF required (skip if optional). Do NOT enter: late payment fees, prepayment penalties (those are conditional), title or appraisal fees you would pay anyway, or optional add-ons.

What does "monthly fee" mean and how is it different from a one-time fee?

A monthly fee (sometimes called a servicing fee or account-keeping fee) is charged every month you have the loan. On a 60-month loan, a $10/month fee adds $600 to your total cost — often more than a small one-time fee. This calculator capitalizes both: it adds them to your true cost and recomputes the effective APR so a "low rate, high monthly fee" loan does not look cheaper than it really is.

What is the difference between nominal rate and APR shown on my loan estimate?

The nominal rate (also called "stated rate" or "interest rate") is what the lender uses to calculate interest on the balance each month. APR adds the cost of fees, prorated over the loan term, and expresses everything as one annual percentage. On personal loans, APR is typically 0.5-3 percentage points higher than the nominal rate. If a lender shows nominal = APR, that means there are zero mandatory fees — verify in writing before signing.

Can I compare offers with different loan amounts or different terms?

Technically yes, but be careful. If Offer A is $20,000 over 60 months and Offer B is $22,000 over 72 months, they are not directly comparable — you are buying different products. The cheapest TOTAL COST will likely be the smaller, shorter loan. The cheapest MONTHLY PAYMENT will likely be the larger, longer one. We show both numbers so you can decide based on what you need: less debt overall, or lower cash flow strain.

Why does the calculator not pull rates from banks automatically?

Three reasons. (1) Rates are personalized — what shows on a marketing page is rarely the rate YOU get after credit check. (2) "Live rate" widgets are usually affiliate feeds, not neutral data. (3) We are a static, no-backend site. We do not call third-party APIs. The honest version is: get 2-3 real, written offers (most banks and credit unions will pre-qualify in 5 minutes with a soft pull), then compare them here.

Is the calculation method the same as what banks use?

Yes. We use the standard APR formula required by Regulation Z under the Truth in Lending Act in the US (and equivalent rules in the EU under Directive 2008/48/EC). The monthly payment formula is the same amortization formula every bank uses: P × r × (1+r)^n / ((1+r)^n - 1). Fees are added to the loan amount and the effective rate is solved using Newton-Raphson iteration. Results match bank disclosures to the cent in most cases — small differences come from rounding.

What if the bank quotes APR but I do not know the breakdown of fees?

Ask. By law in the US (Regulation Z) and EU (Consumer Credit Directive), the lender must disclose an itemized list of fees included in APR before you sign. If they refuse or stall, that is a red flag — walk away. As a workaround, you can enter the offer with nominal rate and "all fees" as a lump sum; the calculator will still produce a comparable total cost.

How do I know if I am getting a fair offer?

Benchmark against three things: (1) Your credit score band — Experian and FICO publish median APRs by score range, (2) Online direct lenders like SoFi, Marcus, LightStream — their published "as low as" rates are a floor, (3) Your local credit union — they often beat banks by 1-3 points. If your best offer is more than 3 points above the median for your score band, you are overpaying. Get more quotes.

Are the offers I enter saved anywhere?

They are saved only in your own browser (localStorage), so the next time you open this page on the same device, your last comparison is still there. We never send them to a server. We do not have a server. We do not know your bank, your offer, or your identity. You can clear the saved data anytime by clicking the Clear button or wiping browser storage.