Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
Loan Comparison Calculator: Payday vs. Installment vs. Cash Advance App
The same amount of money can cost very different amounts depending on how you borrow it. Move the slider to compare a two-week payday loan, a six-month installment loan and a cash advance app side by side, using typical market terms.
- Total to repay
- $575.00
- APR
- ≈391%
- Monthly payment
- $92.30
- Total to repay
- $553.79
- Total to repay
- $510.00
- Typical limit
- $100–$500
Most apps advance only up to about $500 at a time.
Get StartedTypical market terms for comparison. Many states cap payday loans at $500 or less, and actual app limits and fees vary by provider.
The assumptions behind the comparison
Payday loan: a fee of 15% of the amount, or $15 per $100, repaid in one payment after 14 days. This is the most common fee level where state law allows it. Many states cap payday loans at $500 or less, so larger amounts may not be available as a payday loan at all.
Installment loan: 36% APR repaid in six equal monthly payments. 36% is the rate cap many states and federal rules for military borrowers use for small-dollar loans; credit unions often charge less. The interest is calculated as a standard amortizing loan, so each payment covers that month's interest plus part of the principal.
Cash advance app: a flat $10 in optional tips or subscription fees, repaid from your next paycheck. Apps such as EarnIn or Dave usually advance only $100 to $500 at a time and may charge extra for instant transfers, so check the app's own terms. Above $500 the app column shows a warning, because an app is unlikely to advance the full amount.
Payday cost = Amount × 15%Installment payment = P × r(1 + r)^6 ÷ ((1 + r)^6 − 1), r = 36% ÷ 12Cash advance app cost = $10
Payday vs. Installment vs. Cash App Calculator: FAQ
Why does the installment loan cost more in dollars than the payday loan sometimes?
Because you keep the money for six months instead of two weeks. Compare the APR: the payday fee works out to about 391% APR, while the installment loan is 36%. If you would need to roll the payday loan over, its cost quickly passes the installment loan.
Are cash advance apps really that cheap?
For small amounts they usually are, but advances are limited, typically $100 to $500, and instant-transfer fees or monthly subscriptions can add up if you use the app every pay period.
Which option is best?
It depends on the amount and how fast you can repay. For a small gap until payday an app or a credit union payday alternative loan is usually cheapest. For larger amounts an installment loan with a capped APR spreads the cost into manageable payments.