Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 8 April 2026·Methodology
Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.
Loan Comparison Calculator
Which lender offer is actually cheaper once fees, tenure, and rate all interact? Compare two loan offers on total cost (not just EMI), see what negotiating 0.5% off the winner or waiving the fee does to the bottom line, and pick with confidence.
Inputs
Compare two loan offers on total cost, not just EMI.
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Option A total cost
₹1.3Cr
Option A looks better
It delivers the lower total borrowing cost after combining EMI outgo and upfront fees.
Pick the cheaper option only if lender service, prepayment flexibility, and disbursal speed are also acceptable.
Winner
Option A
Option A EMI
₹53,406
Option A total interest
₹68.2L
Saved vs alternate
₹1.8L
Breakdown
- Option A₹1.3Cr49.7%
- Option B₹1.3Cr50.3%
Benchmarks
Option A rate -0.5%
+3.7%You
₹1.3Cr
Benchmark
₹1.2Cr
Negotiating the winning option down half a percent.
Option A fee waived
+0.1%You
₹1.3Cr
Benchmark
₹1.3Cr
Lenders often waive processing fees during offers.
Option A -5 years
+18.0%You
₹1.3Cr
Benchmark
₹1.1Cr
Shorter tenure cuts total interest but raises EMI.
What moves the result most
Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.
Cheapest EMI is not the cheapest loan
Lower EMI usually comes with longer tenure and more total interest. Total cost is what matters.
Choosing the cheaper option saves a meaningful amount
The total-cost gap is large enough that lender quality and prepayment flexibility are the main remaining factors.
Total saving
₹1.8L
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
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At a glance
- What it does
- Compares two loan offers on EMI, total interest, processing fees, and the overall lifetime borrowing cost.
- Key insight
- A lower EMI often means longer tenure and more total interest. Rank by total cost, not monthly payment.
- Typical output
- On ₹60L, Bank A (8.85% / 20y / ₹10k fee) vs Bank B (8.2% / 22y / ₹35k fee): Bank B has lower EMI but saves ~₹2L total despite the higher fee.
- Best used for
- Choosing between lender offers before signing, or deciding if a balance transfer is worth the paperwork.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Each option uses the standard reducing-balance EMI formula.
- Total borrowing cost = total EMI outgo + processing fees.
- The cheaper total-cost option wins if flexibility and service levels are similar.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Rates are assumed constant for the comparison period.
- Prepayment penalties and floating-rate resets are excluded from the core model.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Should I only compare EMI?
No. A lower EMI can still be more expensive if the tenure is longer or the fees are higher.
When does a refinance become worth it?
Usually when the rate drop is meaningful enough to recover fees quickly and you still have enough tenure left for the savings to matter.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Comparison pages
No direct comparison yet.
Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
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