Historical Interest Rate Calculator
Dataset of historical interest rates
One of the major problems with the historiography of interest rates in the Middle Ages is that there is no large and consistent dataset of interest rates. Most discussions are based either on contemporary statements or regulation of interest rates, the relationship of which to the actual rates charged in practice is uncertain, or on the few rates to have been calculated in secondary sources. These figures are often geographically and chronologically scattered, and also involve borrowers and lenders in a variety of different situations. Moreover, different historians have used different methods of describing and calculating interest rates, making it more difficult to draw comparisons. A larger dataset, using a standardised and consistent methodology, would permit more detailed and robust analysis of changing interest rates, both over time and in different countries, as well as the rates charged in different circumstances; such as those charged to the nobility compared to the peasantry, or the rates demanded from borrowers perceived to have poor credit compared to those with good credit. This will all contribute to our understanding of the historical development of the economy.
One of the aims of this project is to build up such a dataset of historical interest rates based on the calculations performed by this interest rate calculator. This approach has another advantage. As mentioned above, it is rare to find all the necessary information to calculate historical interest rates, and many references to interest rates are scattered far and wide through various historical sources - governmental archives, collections of deeds, account books, and many others. A historian specifically looking for interest rates would be unlikely to have time to trawl through such disparate sources in the hope of chancing on the required data. On the other hand, a local or political historian coming across one or two such finds in the course of their own research, might not have the training or time to calculate an accurate interest rate. The historical interest rate calculator offered here thus serves a dual purpose, by providing an easy-to-use means of calculating accurate interest rates, and at the same time aggregating examples of interest rates from a wide variety of sources that would previously have been scattered.
After every interest rate calculation, the user will be asked whether they wish their data to be included in the dataset of historical interest rates and to provide the following information.
Name
This will allow us to provide attribution and acknowledgement to the contributors.
If a valid e-mail address is entered, then the user will also be sent a copy of their interest calculation, with the data entered. This will not be made available to anyone else.
Reference
It is vital that a historical reference is given for each interest rate included in the dataset, to ensure the validity of the data. This is also intended for any other details that may be useful to other users of the dataset. This might include relevant historical context or any peculiarities/ambiguities of the source. For example, if the estimation of any date ranges used in the calculation involved a complicated process of deduction, it would be greatly appreciated if some account of the reasoning behind this was given here.