Result
Difference in overpayment
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Overpayment for each option = annuity payment for that term × term in months − loan amount. The difference in overpayment = overpayment for the longer-term option − overpayment for the shorter-term option.
At the same amount and rate, a longer term almost always produces more overpayment, even with a smaller monthly payment — because the principal is repaid more slowly and interest keeps accruing on a larger balance for longer. This is the classic trade-off between payment size and total loan cost.
The calculator compares exactly two specific terms — to see overpayment across every possible term, it's easier to run several pairs of values by hand or use the separate loan overpayment calculator for each option individually.