How to compare personal-loan offers
Quick answer
Start with the cash you need. Then compare the full cost and monthly payment of each offer that covers it. The lowest payment may last longer and cost more. Keep cash received, total paid, and the payoff date together when you compare.
Check that each offer covers the expense
Use the amount that must reach you after fees. A $10,000 loan may send less than $10,000 if the lender takes a fee first. An offer that leaves you short does not cover the same need.
For example, a $10,000 loan with a $500 fee taken out sends $9,500. If you need $10,000, you still have a $500 gap. Check that before comparing the payments.
Check the cash each offer sends. See whether a fee comes out of your cash or adds to what you owe.
Compare the same facts from each offer
Use the same facts from each written offer. Check that each loan sends enough cash before you compare the price.
| What to compare | What it tells you |
|---|---|
| Cash received | The money you get after any fee taken out. |
| Monthly payment | The bill you must fit beside your other costs. |
| Total paid | All loan payments plus any fee paid on its own. |
| Loan length | How many months you make those payments. |
Subtract cash received from total paid to find the cost to borrow. Compare the lender’s APR too. APR includes interest and certain fees; the interest rate alone does not.
Source: Regulation Z: the APR method.
A higher rate can still have a lower full cost
These two made-up offers both send you $9,500 for the same expense. Both have fixed rates and 36 monthly payments. Offer A takes a fee; offer B has no fee.
| What to compare | Offer A | Offer B |
|---|---|---|
| Loan amount | $10,000.00 | $9,500.00 |
| Fixed interest rate | 12% | 14% |
| Fee | $500 taken from the loan | $0 |
| Cash received | $9,500.00 | $9,500.00 |
| Loan length | 36 months | 36 months |
| Monthly payment | $332.14 | $324.69 |
| Interest in all | $1,957.15 | $2,188.75 |
| Total paid | $11,957.15 | $11,688.75 |
| Cost to borrow | $2,457.15 | $2,188.75 |
Offer B costs $268.40 less, even with its higher interest rate. It also has the lower payment. On these terms, B wins both checks. You still need to check that the payment fits your bills.
These rates are interest rates, not APRs. No lender APR is given for this example. Use each real offer’s disclosed APR too; this model does not calculate it.
Rung calculation, not a loan offer. Figures use fixed rates and monthly payments. Totals use unrounded payments; the last payment may vary by cents. Late fees and optional extras are left out. See the model and limits.
A low payment can have a high total cost
More months can lower the payment while adding interest. If one offer sends more cash than another, the totals also pay for different amounts. Do not treat them as equal loans.
Ask for offers that cover the same cash need. Then compare what you pay each month and in all. The lowest-cost loan still needs a payment you can afford.
Check the terms before you choose
Read the written offer for fees, the due date, and rules for late or early payments. If a fee leaves you short or the payment crowds out bills, pause. See what else to check before signing.
Source: CFPB guidance on fees and written disclosures.
An ad’s starting APR is not a rate promised to you. See how advertised and funded rates differ.
Put the cash and costs side by side
Enter up to 3 offers. The tool separates full cost, monthly payment, and loan length.
Sources and method
Sources checked August 28, 2026. See our editorial policy for how we check the work.
Read the sources and limits
- CFPB: Personal installment-loan fees. Common required and optional charges and the need to compare disclosures.
- CFPB Regulation Z Appendix J. The official actuarial framework for closed-end APR computations.
- Rung loan-offer comparison method. Three-offer comparison personal-loan-compare@2026-08-28.1.
Worked examples use fixed rates and payments. They leave out late fees and optional extras. They do not predict approval or a credit score.