A device and method determine a location of a terminal by selecting one of a GPS signal and a beacon signal when a terminal moves indoors and outdoors. The device includes a measurement unit for measuring a signal strength of a GPS signal and a signal strength of a beacon signal, respectively; a selection unit for comparing the measured signal strengths and selecting one signal of the GPS signal and the beacon signal based on the comparison; and a determination unit for determining the location of the terminal using the selected signal. The selection unit compares the measured signal strengths based on at least one of a received signal strength indicator (RSSI) and a signal-to-noise ratio (SNR) to select a signal having a comparatively stronger strength, and selects a signal whose strength is increasing when the measured signal strengths are substantially equal to each other.