This article presents a systematic procedure for comparing three common types of loans--declining balance, add-on and discount--which have unequal and different types of finance charges. The procedure can be applied using handheld calculators, microcomputers or host computers. Its basic appeal is twofold: it provides a method useful in applied research and for teaching* undergraduate students and agricultural extension clientele. A method is presented for calculating an adjusted total loan cost and an adjusted APR for each type of loan. The adjusted APR's provide the most appropriate basis for a cost comparison of potential loans.