⚠️ Payday Loan Calculator
Calculate payday loan costs and APR
⚠️ Warning: High-Cost Loans
Payday loans are extremely expensive short-term loans with very high APRs (often 300-400% or higher). Consider alternatives like personal loans, credit cards, or credit union loans which typically have much lower rates. Payday loans can lead to debt cycles that are difficult to escape.
Fee charged for the loan
Typically 7-30 days
How to Use This Calculator
Enter Loan Amount
Input the payday loan amount you're considering borrowing.
Enter Finance Charge and Term
Enter the finance charge (fee) and loan term in days (typically 7-30 days for payday loans).
Review Costs and APR
See the total repayment amount, annualized APR (often 300-400% or higher), and finance charge. Consider alternatives before taking a payday loan.
Formula
Total Repayment = Loan Amount + Finance Charge
APR = (Finance Charge ÷ Loan Amount) × (365 ÷ Loan Term) × 100
Example Calculation:
If loan $500, finance charge $75, term 14 days:
• Total repayment = $500 + $75 = $575
• APR = ($75 ÷ $500) × (365 ÷ 14) × 100 = 391%
• Finance charge as % of loan: ($75 ÷ $500) × 100 = 15%
About Payday Loan Calculator
A payday loan calculator helps you understand the true cost of payday loans, which are short-term, high-cost loans typically due on your next payday. Payday loans are extremely expensive, with APRs often exceeding 300-400% or even higher. This calculator shows you the total repayment amount, annualized APR, and finance charges. Payday loans should be avoided if possible - consider alternatives like personal loans, credit cards, credit union loans, or payment plans, which typically have much lower rates.
When to Use This Calculator
- Cost Awareness: Understand the true cost of payday loans
- APR Calculation: See the annualized interest rate
- Decision Making: Compare payday loans to alternatives
- Financial Education: Learn about payday loan costs
Understanding Payday Loans
- Very High APR: Typically 300-400% or higher
- Short Term: Typically 7-30 days until next payday
- High Fees: Finance charges are substantial
- Debt Cycle: Can lead to difficult-to-escape debt cycles
- Regulation: Regulated differently by state
Why Use Our Calculator?
- ✅ Cost Awareness: See true cost including APR
- ✅ Decision Support: Make informed decisions
- ✅ Comparison: Compare to alternatives
- ✅ Education: Understand payday loan costs
- ✅ 100% Free: No registration or payment required
Alternatives to Payday Loans
- Personal Loans: Much lower rates (typically 5-36% APR)
- Credit Cards: Lower rates than payday loans (typically 15-30% APR)
- Credit Union Loans: Payday alternative loans with lower rates
- Payment Plans: Negotiate payment plans with creditors
- Emergency Fund: Build emergency fund to avoid need for payday loans
Frequently Asked Questions
Why are payday loans so expensive?
Payday loans are expensive because they're short-term, unsecured loans with high default risk. Lenders charge high fees to compensate for risk. The APR appears high because the loan term is very short (days), but the fees are substantial. For example, a $15 fee on a $100 loan for 14 days equals a 391% APR.
What is the typical APR on a payday loan?
Payday loan APRs typically range from 300% to 400% or even higher. This is because finance charges are high relative to the loan amount and term. For example, a $75 fee on a $500 loan for 14 days equals a 391% APR. Some payday loans have APRs exceeding 600%.
Should I take a payday loan?
Payday loans should be avoided if possible. They're extremely expensive and can lead to debt cycles. Consider alternatives: personal loans (5-36% APR), credit cards (15-30% APR), credit union loans, payment plans with creditors, or building an emergency fund. Only consider payday loans as a last resort and have a plan to repay immediately.
Are payday loans legal?
Payday loan legality varies by state. Some states allow payday loans with regulations, some have strict limits, and some ban them entirely. Regulations may include: maximum loan amounts, maximum finance charges, loan term limits, and cooling-off periods. Check your state's laws before considering a payday loan.