Did you know?
If you borrow $50,000 at an 8 percent annual interest rate, to be paid back over 20 years, do you know how much it will cost you?
- If you make payments of $418.22 each month over a period of 20 years, you will pay $50,372.80 in total interest.
- That interest is more what you originally borrowed! It will cost you more than $100,000 to borrow $50,000.
- Do the math: $418.22 per month x 240 months = $100,372.80.
Don't believe it?
Try the loan calculator below to see how much it costs to borrow money.
Written by Ted Frick February 8, 2001 (revised June 24, 2012)