Use the arrangement/facility fee shown on each offer's key facts sheet — this is where a lower headline rate can still end up costing more overall.
This compares the numbers you enter, not what a lender will actually approve you for — your real rate depends on credit history and trading time, and some lenders add costs (broker fees, early repayment charges) not captured here. Always compare the total repayable figure on the actual agreement, not the summary shown by a broker.
A lower headline interest rate doesn't always mean a cheaper loan once arrangement fees and the full repayment term are factored in — a shorter, higher-rate loan can cost less overall than a longer one at a lower rate. This tool works out the true total cost of borrowing for two offers side by side, so the comparison is on what actually leaves your account over the life of the loan.
Always compare the total repayable figure quoted on the lender's key facts sheet against what this tool calculates — if they don't match closely, check whether the agreement includes extra costs like broker fees or mandatory insurance that aren't reflected in the headline APR.
APR standardises rate and fees into one number, but it assumes you keep the loan for its full term. If you might repay early, or the fees are structured differently between offers, comparing the actual total repayable figure gives a more reliable picture than APR alone.
A shorter term usually means higher monthly payments but less total interest paid — this tool shows both figures side by side so you can weigh affordability against total cost rather than picking on rate alone.
No — some loans charge a fee for paying off early, which isn't reflected here. If you think you might clear the loan ahead of schedule, check each offer's early repayment terms before deciding.