Loan Comparison Calculator

Two lenders can offer the same interest rate and produce wildly different total costs. One quote includes a 1% origination fee and 24 months of interest-only. Another has no origination fee but requires full amortization from day one. A third offers a lower spread but indexes to a different benchmark. The only way to compare them honestly is to calculate the total cost of each loan over the expected hold period, including fees, IO savings, and prepayment exposure.

Most teams compare lender quotes in email threads or side-by-side cells in a spreadsheet. That works for two quotes on one deal. It breaks when you have four lenders quoting on three deals simultaneously, each with different structures, and your managing director asks which deal has the best financing lined up.

The interest rate is one number in a larger equation. Origination fees increase your basis. IO periods improve early cash flow but increase total interest paid. Shorter amortization schedules reduce total interest but increase monthly payments and compress DSCR. Prepayment penalties affect your flexibility to refinance or sell. A loan comparison that only shows the rate misses most of what actually determines the cost of capital on a deal.