Loan Comparison Tool
Loan Comparison Tool spreadsheet allows users to input loan information to compare total payments over the life of the loan. Users can enter data for two different loans to compare before making a decision, or see the impact of paying more than the required monthly payment. This tool is designed for loans up to 30 years and provides an estimation of interest fees.
Content article
The Loan Comparison Tool provides a detailed analysis of two loan options side by side, allowing users to evaluate their financial decisions effectively. In the "Entry and Results" tab, users are prompted to input their loan information into designated yellow spaces. The tool is designed for fixed-rate loans only, as it does not accommodate adjustable interest rates, credit lines with increasing balances, or loans extending beyond 30 years.
For Loan Option 1, the total interest paid is currently recorded as $0.00, with total payments also at $0.00. The estimated years to payoff for this option is approximately 30.08 years. Similarly, Loan Option 2 mirrors these figures, with total interest paid at $0.00, total payments at $0.00, and a payoff timeline of 30.08 years as well. This section emphasizes the importance of entering accurate loan data to generate meaningful results.
In the "Number Crunching" tab, the detailed breakdown of each loan option begins with the beginning balance set at $0.00 for both options. The monthly payment is also recorded as $0.00, and the interest rate stands at 0.00% for each loan. The table spans 60 rows, detailing monthly calculations for both Loan Option 1 and Loan Option 2. For instance, in the first month, both options show a balance of $0.00, an interest rate of 0.00%, and no interest or payment recorded, resulting in a principal paid of $0.00 and cumulative interest of $0.00. This pattern continues consistently through the first 60 months, with each month reflecting the same figures, indicating that no data has been entered yet.
The tool encourages users to utilize their monthly loan statements for current balances and to input relevant data to see a comprehensive breakdown of their loan payments and interest over time. The absence of figures in the "Number Crunching" tab suggests that users need to input their specific loan amounts, payment schedules, and interest rates to receive accurate calculations.