Term Comparison Calculator — Compare Terms, Rates, and Costs Side-by-Side

Term Comparison Calculator

Compare two terms, rates, or financial products side-by-side. Calculate differences in costs, payments, and total amounts to make informed decisions.

Term 1 Details

5%
5 years

Understanding Term Comparison

Compare different loan terms, investment periods, or financial products to see how interest rates, term lengths, and payment frequencies affect total costs and payments.

Term 2 Details

7%
3 years

About Term Comparison

This calculator helps you compare two different financial terms to understand which option offers better value. Lower interest rates or shorter terms usually mean lower total costs.

Term Comparison Results

Summary
Detailed Comparison
Cost Analysis

Total Cost Difference

+£1,265
Term 2 costs more overall
Term 1 Total Cost
£11,323
Term 2 Total Cost
£12,588
Term 1 Monthly Payment
£189
Term 2 Monthly Payment
£350

Detailed Term Comparison

Comparison Metric Term 1 Term 2 Difference

Cost Breakdown Analysis

Comparison Formula

Total Cost = Principal + Total Interest | Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]

Where P = principal amount, r = periodic interest rate (annual rate ÷ periods per year), n = total number of payments (term years × periods per year). Lower rates and shorter terms generally reduce total costs.

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