Fixed vs Variable Loan Calculator

Compare fixed-rate vs variable-rate loans side by side. See which saves more based on your expected rate trajectory.

πŸ”’ FIXED RATE

$2,509/mo

Total: $602,237

πŸ“ˆ VARIABLE RATE

Starts $2,326/mo

Total: $717,148

Fixed wins β€” saves $114,911

Fixed vs Variable: The Key Decision

This is one of the most consequential decisions in personal finance. The right choice depends on rate outlook, your risk tolerance, and how long you'll hold the loan.

  • Choose Fixed when: Rates are historically low, you want predictability, or you plan to hold 10+ years
  • Choose Variable when: Rates are high and expected to fall, you plan to sell/refinance in 3-5 years, or you can handle payment fluctuations

Fixed vs Variable Loan Calculator FAQ

πŸ”— Related Calculators

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πŸ“˜ Key Term

Fixed RateAn interest rate that remains constant throughout the loan tenure. Provides EMI certainty but is typically 1-2% higher than floating rates. Some banks offer hybrid options: fixed for the first 2-3 years, then floating.Read full definition β†’