Loan Term Comparison Calculator

See how the repayment term changes a fixed loan. Keep principal and rate the same while changing the two terms and cash fees.

Enter all amounts in one currency. Currency selection changes labels, not amounts or jurisdiction. No conversion is performed.

Mortgage interest scenarios use the stated monthly-rate approximation. Selecting CAD does not apply Canadian semiannual mortgage compounding; use lender terms to check an actual mortgage quote.

Range: 0–1,000,000,000
Range: 0–100
Range: 1–600; whole numbers
Range: 0–1,000,000,000
Range: 1–600; whole numbers
Range: 0–1,000,000,000

Enter your values to see an estimate. Enter 0 for amounts that do not apply.

How this calculator works

A nominal annual percentage is divided by 12 for the monthly rate. The payment amortizes principal over the entered term; at 0%, payment is principal divided by months. Both options use the same principal and annual rate. Total cost adds each option’s upfront cash fees; differences are option A minus option B.

Worked example

Borrowing 1,200 at 0% over six months costs 200 per month; over 12 months it costs 100. With no fees, both total 1,200, so the term changes the payment without changing cost in this zero-rate example.

Assumptions and limits

Assumes equal monthly payments, a constant rate and full amortization. Actual payment rounding and lender conventions can differ. No approval, tax deduction or lender rate is promised. Fees are paid in cash and do not increase principal. This isolates the term choice; use loan comparison when comparing different rates.

How to choose your inputs

Hold the amount borrowed and nominal rate constant so that the two terms are the main difference. Enter fees paid in cash for each option rather than adding those fees to principal. If the lender changes the rate with the term, use the broader loan comparison calculator so that each offer has its own rate.

How to interpret your result

At a positive rate, compare how much extra interest accompanies the smaller payment on a longer term. Then compare the shorter option’s payment with your available monthly cash. A zero-rate test isolates payment timing only: it cannot demonstrate the additional interest cost that often motivates choosing a shorter term.

Primary references

This educational estimate uses your inputs. It is not individualized financial, tax, insurance, or investment advice, a lender offer, approval decision, or a promise of future results.

Explore related calculators

Use your scenario as a starting point for setting financial goals and tracking your account balances.

All available financial calculators