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this post was submitted on 12 Nov 2025
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Chapotraphouse
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I wanted to check how much that loan would cost over 10 years, but online loan calculators don't even let you enter interest rates above 100%
4,000×(3.795)^10
$4000×(1+rate as decimal)^years (assuming yearly compounding)
Which means $2,478,436,484.67 Or $20k/month on average
A 5% rate is only ~$6500
If it's compounded monthly, you divide the rate by 12 and multiply the years by 12, which gives you $326,668,159,170,121.94 over the term.
Yeah, compounding interest breaks down when you go over 100% lol
You say it "breaks down" but all I see is infiniprofit
"Only" 2500 profit for the hard work of letting you use their money
That's assuming you don't pay down principal. If you're paying more than $20/month on it you'll be paying less in interest every month. Whereas the 279% loan means you need to pay almost 3x the principal every month or it grows
Basically no one will give a 5% loan unless it's a mortgage with a huge down payment or you're borrowing from your 401k. Most rates are closer to 10% from banks/credit unions. A 5% loan almost beats inflation right now.
my kneecaps hurt just thinking about this