The Cost of Borrowing Money: Loan Literacy 101

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?

Don't believe it?

Try the loan calculator below to see how much it costs to borrow money.

Principal (amount to be borrowed): $ (in whole dollars, no punctuation -- e.g., 1500)

Annual interest rate: (as a percentage, e.g., 7.25 percent per year)

Months to pay back: (months in whole numbers, e.g., 24)

Written by Ted Frick February 8, 2001 (revised June 24, 2012)