Everyone asks, “What’s the rate?” But very few people ask the more important question: “What’s the total cost?”

In this episode of The Intelligent Borrower, Todd Stichler breaks down the true meaning of interest rate and how it impacts borrowers over time. Using a simple car loan example, he explains the three components that determine the real cost of borrowing — balance, rate, and time — and shows how small adjustments, like making extra principal payments, can dramatically reduce the total amount paid.

If you want to stop thinking like a consumer and start thinking strategically about debt, this episode will shift how you evaluate every loan going forward.