Key takeaways
What to know before you compare
- Enter final or same-stage estimates for both offers.
- Compare cash received when origination fees differ.
- Compare cost per $1,000 received when the deposits are not identical.
- Review fixed-rate, payoff, late-payment, and servicing terms after the math.
Side-by-side estimate
Compare two personal loan offers
Use final terms or same-stage estimates. The calculator assumes fixed rates, monthly payments, and fees deducted from proceeds.
Cost per $1,000 is a dollar comparison, not APR. Review each lender’s disclosed APR and payment schedule too.
Put both offers on the same page
Record the stated amount, interest rate, APR, fee percentage and dollars, term, monthly payment, net proceeds, and scheduled repayment. Use either two final offers or two prequalification estimates; mixing stages can create a false comparison.
The calculator uses the stated interest rate to estimate payment and assumes a deducted percentage fee. Replace its estimates with disclosed figures whenever the lender provides them.
Compare cost when proceeds differ
A loan with a larger stated amount may not provide more usable cash if its fee is larger. Cost per $1,000 received puts financing cost on a common scale. It is not an APR; it is a dollar comparison that helps expose the effect of deductions and term length.
If the purposes or amounts differ materially, decide the borrowing need first. A cheaper loan is not cheaper if it encourages unnecessary principal.
Break a close result with contract details
When the costs are close, consider payment-date flexibility, customer support, autopay conditions, late and returned-payment fees, and early-payoff treatment. Confirm who will fund and service the account.
Save both disclosures and write down why the selected payment fits the budget. A transparent decision should still make sense after the urgency of applying has passed.
Frequently asked questions
Should I always choose the offer with the lower APR?
Lower APR is useful, but confirm that the amount, term, deposit, and payment also fit the same need.
What if one lender quotes a rate and the other quotes APR?
Ask both lenders for comparable figures. An interest rate and an APR are not interchangeable.
Why compare cost per $1,000 received?
It helps normalize offers with different deducted fees or stated amounts. Use it alongside APR and the actual payment schedule.
Sources and methodology
Karma Loans uses primary government and regulatory sources for material definitions and consumer guidance. Calculators use the assumptions shown beside each tool and round displayed results to two decimal places.
Educational use only. This article and its calculators are not financial, legal, tax, or accounting advice. Karma Loans is not a lender and does not make credit decisions. Provider disclosures and signed agreements control.