Personal Loans
3-Year vs. 5-Year Personal Loan
Compare the monthly-payment and total-interest trade-off between three- and five-year terms.
A three-year personal loan usually has a higher scheduled payment than a five-year loan because the same balance must be repaid in fewer months. The longer term can reduce the payment but may increase total interest when the APR is the same.
Example: $20,000 at 12% APR
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $664 | $3,914 |
| 60 months | $445 | $6,693 |
These are mathematical examples using a fixed APR and do not include lender fees.
What to consider
Compare payment affordability with total interest and the time required to repay the debt. The right term depends on the actual offer and your budget.
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Open the calculatorEducational only. This page provides general information and mathematical examples. It is not financial advice, a loan offer, approval, or rate quote. Actual terms vary by lender and borrower.