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.
Payday Loan APR Calculator
Payday lenders usually quote a flat fee, such as $15 per $100 borrowed, instead of an interest rate. Enter the amount, the fee and the number of days until repayment to see what that fee looks like as an annual percentage rate, the number federal law requires lenders to disclose.
A typical payday fee is $15 per $100 borrowed.
Usually 14 to 30 days, or the time until your next paycheck.
- Annual percentage rate (APR)
- 391%
- Total to repay
- $345
- Fee per $100 borrowed
- $15
Enter a loan amount and a term greater than zero.
Find Better AlternativesEstimate for a single-payment loan repaid on the due date. Your loan agreement must show the exact APR before you sign.
How the APR calculation works
APR shows the cost of credit as a yearly rate, so loans with different fees and terms can be compared on one scale. For a single-payment loan the calculation is simple: divide the fee by the amount borrowed, multiply by the number of times the term fits into a year (365 divided by the term in days), then multiply by 100.
A $45 fee on a $300 loan for 14 days is a 15% charge for two weeks. Repeated over a full year, that is about 391% APR. The shorter the term, the higher the APR for the same fee, which is why two-week loans with seemingly small fees end up with three-digit rates.
The Truth in Lending Act requires lenders to show the APR in your loan agreement before you sign. If the number in your contract is different from what this calculator shows, ask the lender which fees are included. Credit union payday alternative loans (PALs) are capped at 28% APR, and many states cap small-loan rates at 36%.
APR = (Fee ÷ Loan amount) × (365 ÷ Term in days) × 100Total to repay = Loan amount + Fee
Payday Loan APR Calculator: FAQ
Why is a payday loan APR so high if the fee is small?
Because APR annualizes the fee. A 15% fee for 14 days repeats 26 times in a year, so the yearly rate is about 391% even though you only pay the fee once if you repay on time.
Is APR the same as the interest rate?
Not exactly. APR includes the interest and most finance charges, expressed as a yearly rate. For payday loans the fee is the finance charge, so the fee drives the whole APR.
What APR is considered affordable for a small loan?
Federal credit union payday alternative loans are capped at 28% APR, and many states and consumer groups use 36% APR as the upper limit for small-dollar credit. Anything in the hundreds of percent is very expensive borrowing.
Does this calculator include rollover fees?
No. It assumes you repay the loan once at the end of the term. If you extend or renew the loan, each renewal adds another fee; use the rollover calculator to see that cost.