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Mortgage Comparison Calculator

Weigh two mortgage offers against each other on the same loan amount. Enter each rate, term, points and fees, then press Compare to see which one costs less and when it pays off.

Written by TopicDrill Editorial Team·Updated June 2026

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Loan amount

Both offers are compared on the same principal.

$

Offer A

$

Offer B

$

Lower total cost

Offer B wins

Saves $32,119 in total interest plus upfront cost over the term.

Offer A
Monthly
$1,896
Total interest
$382,633
Upfront cost
$3,000
Total cost
$385,633
Offer BLower cost
Monthly
$1,799
Total interest
$347,515
Upfront cost
$6,000
Total cost
$353,515
Offer B has the lower monthly payment, recovering its extra upfront cost in about 2 yr 7 mo.

Total cost comparison

Interest Upfront
$0$96.4k$192.8k$289.2k$385.6k$385.6kOffer A$353.5kOffer B

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How the comparison works

Both offers run against the same loan amount so the only differences are the terms you enter. For each one the tool works out the level monthly payment, multiplies it across the full term to find total interest, then adds the upfront cost of points and fees to reach a single total cost you can line up side by side.

The offer with the lower total cost is the cheaper loan if you hold it for the whole term. But because a lower rate often costs more upfront, the tool also finds the break-even month where the smaller payments finally repay that extra upfront money.

A worked example

On a 300,000 dollar loan, Offer A is 6.5 percent with no points, and Offer B is 6.0 percent with one point, about 3,000 dollars extra upfront. Offer B trims roughly 95 dollars a month, so it recovers that point in around 32 months and saves a large amount of interest if you keep the loan past that point.

Things to keep in mind

Use the official Loan Estimate forms from each lender for an apples-to-apples comparison, as explained in the CFPB Loan Estimate guide. Once you pick an offer, map out the full payment schedule with our mortgage amortization calculator.

Frequently asked questions

How should I compare two mortgage offers?

Looking at the interest rate alone can mislead you, because a lower rate often comes with higher upfront points and fees. This tool compares both offers on the same loan amount and adds up monthly payment, total interest and upfront cost, so you can judge them on the true total you would pay.

What are mortgage points?

Points are an upfront fee paid to the lender to lower your interest rate, where one point equals one percent of the loan amount. Paying points raises your closing cost but reduces every monthly payment, so they pay off only if you keep the loan long enough to recover the upfront money.

What does the break-even point tell me?

The break-even point is how long it takes for the monthly savings of the cheaper-payment offer to recover the extra you paid upfront for it. If you expect to keep the loan past that point you come out ahead, and if you plan to sell or refinance sooner the other offer is usually better.

Can the two offers have different terms?

Yes. You can set a different term for each offer, for example a 30 year loan against a 15 year loan. The shorter term usually has a higher monthly payment but far less total interest, and the total cost figure makes that trade clear at a glance.

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