The shorter loan has the higher monthly payment but can still produce the lower total interest.
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Loan Comparison Calculator
Use one loan amount and two rate-and-term combinations to see whether the lower instalment also lowers total cost.
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No account. Formula and assumptions are shown below.
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Formula & disclaimer
Monthly Payment = P Γ r Γ (1+r)^n Γ· ((1+r)^n β 1), calculated separately for both options
View assumptionsFormula reviewCalcs at Hand Editorial TeamVerified 1 September 2026 Β· automated checks included
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How to read this result
Three useful checks, kept deliberately short.
Compare RM100,000 for ten years at 4.2% with seven years at 4.8%: Calculate each amortising payment Β· Total the interest over each term Β· Compare cash flow with total cost.
A lower rate does not always mean the lowest total cost when terms and fees differ.
Formula and assumptions
Monthly Payment = P Γ r Γ (1+r)^n Γ· ((1+r)^n β 1), calculated separately for both optionsThe calculator assumes fixed rates, level monthly instalments and no extra payments.
Keep in mind: The comparison excludes lender fees, insurance, taxes, promotional conditions and rate changes unless reflected in the entered figures.
Produced byCalcs at Hand Editorial Team
Last formula check1 September 2026
Review methodKnown examples + boundary cases
Editorial and correction policy β