What does it cost to borrow?

As you know, it costs money to borrow, but the interesting question is how much it actually costs per month. Of course, it is really difficult to say exactly on the krona how much it costs in advance when interest rates are set individually, etc.

But here I am going to do some regular loan types and what it is about to cost. All figures here are before the interest deduction of 30%.



If we start with the smallest loans that go under the term micro loans, it is very much about how big the loan is and the length of the loan. If you look at a loan of USD 3,000, you can find one for USD 200. If the money is instead to be borrowed for 90 days instead of a short 30 then the cost will also go up to USD 350.

Note that this is for the cheapest lender we compare here (apart from those who offer free loans to new customers), instead you look at the most expensive lenders, you can put on about USD 500 for a loan of 30 days and around USD 700 for a loan in 90 days. This is thus the actual interest expense here I have not included amortization.

Thus, the loan cost per month is not particularly high, but the total cost is relatively high. If you jump up to USD 10,000 and check in 90 days where it feels most reasonable, the cheapest lender will take about 350 USD from you per month. The most expensive one takes about USD 1,066 per month. Which is a big difference in price there.

Consumer Lending


If we move on to private loans it is a little easier to set up figures for the whole thing as it does not vary in exactly the same way. What we are looking at here is a private loan of USD 100,000 for 5 years which feels pretty standard.

If a lender offers an interest rate of 5% and repayment according to annuity, the cost per month will be USD 1,887 and then the amortization is included. If you instead calculate 10% interest, the cost per month will be USD 2 125.

If you make a quick comparison for the largest private loans of USD 350,000, the same calculation shows a monthly cost of USD 6,605 and USD 7,436. It then starts to deal with quite large sums each month.

Mortgage loans

Mortgage loans

For mortgages I can borrow a text that we have here on the page that describes exactly this. “USD 1 million costs USD 2,500 per month if the interest rate is 3% and USD 4,117 if the interest rate is 5%. Borrowing instead of USD 2 million will cost USD 5,000 at 3% and USD 8,333 at 5%. These are also figures that applies before the 30% tax deduction. So to see the real cost, it’s this sum minus 30%. “

Here we talk about figures without any amortization. Here, we have also expected a significantly lower interest rate for mortgage loans, as it normally is in this way. It also shows how much difference there is in monthly costs between the different types of loans.

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