The trade-off in one sentence
A longer term gives you a smaller monthly payment and a larger total interest bill; a shorter term does the opposite. Loanify terms run from 3 to 36 months, and there's no prepayment penalty, so you can always pay a longer loan off faster.
A $2,000 loan at different terms
At our representative 24.99% APR:
| Term | Monthly payment | Total interest |
|---|---|---|
| 6 months | $358.05 | $148.28 |
| 12 months | $190.08 | $280.94 |
| 18 months | $134.37 | $418.73 |
| 24 months | $106.73 | $561.59 |
| 36 months | $79.51 | $862.33 |
Going from 12 to 36 months cuts the payment by about $110 but adds about $580 in interest.
A simple rule for choosing
Pick the shortest term whose payment you could still make in your tightest month of the year. If two terms both fit, take the shorter one. Try your own numbers in the Loanify loan calculator.
Choosing a longer term for breathing room and then paying extra when you can is a sound strategy, as long as there's no prepayment penalty. With Loanify there isn't.Lending tip from the Loanify Editorial Team
If your budget changes later
You can make extra payments at any time to finish early. If money gets tight instead, contact support before the due date to ask about options. Our guide on paying off a loan early shows how much extra payments save.
Frequently asked questions
What is the shortest Loanify term?
Loanify terms start at 3 months and go up to 36 months, depending on the amount and your state.
Does a longer term hurt my credit?
Not by itself. What matters most is paying on time. A longer term costs more interest overall, though.
More guides
Understanding APR on small loans
Origination fees explained
Loanify loan requirements: what lenders check and why
About the Loanify Editorial Team
Our guides are researched, written and fact-checked against federal lending rules, CFPB guidance and current loan terms. Every payment example is calculated with the standard amortization formula. Read our editorial policy.