Fixed vs variable rate comparison

Compare rate types to find the cheaper option for your personal loan.

Monthly repayment$425
$5,496Total interest
$25,496Total cost
Mar 2031Payoff
Fixed vs Variable
Compare rate types side by side

Fixed vs Variable

Fixed vs variable rate comparison

Compare fixed and variable interest rates side by side to see which option costs less over the life of your personal loan.

Inputs

Side-by-side

Fixed monthly

$410

Variable monthly

$401

Fixed total interest

$4,620

Variable total interest

$4,046

Fixed total cost

$24,620

Variable total cost

$24,046

Savings summary

Monthly difference

$10

Interest difference

$574

Total saving

$574

Cheaper option

Variable rate

The variable rate saves you $574 over 5 years. Note: variable rates can change over the loan term.

Share resultsEdit inputs
Explore full personal loan analysis →

Fixed rates provide payment certainty — you know exactly what you will pay each period. Variable rates may start lower and give you flexibility to make extra repayments without break fees, but they carry the risk of rate increases.

For short-term personal loans (1-3 years), the rate type choice matters less because there is less time for variable rates to move significantly. For longer terms, the decision becomes more important.

Repayment CalculatorExtra Repayments

Frequently Asked Questions

What is the difference between fixed and variable rates?
A fixed rate stays the same for the loan term, giving you certainty. A variable rate can change with market conditions — it may start lower but could increase.
Which is cheaper — fixed or variable?
It depends on rate movements. If rates rise, fixed is cheaper. If rates fall or stay flat, variable often wins. Use this calculator to compare at current rates.
Can I switch between fixed and variable?
Some lenders allow you to switch, but there may be break fees on fixed-rate loans. Check your loan terms before switching.