Know what a lender is allowed to charge you before you sign anything, and spot cheaper options early. Know what lenders can charge before you sign.
Payday Loan APR Finder
Payday lenders often quote a flat fee instead of an interest rate. You'll enter the dollar amount you want to borrow, the flat fee the lender charges, and how many days until you must repay. The calculator turns that fee into an annual percentage rate, the figure federal law requires lenders to disclose, and shows the total dollars you'll repay.
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
- $575
- 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.
Ways APR is calculated
Expressed as a yearly figure, APR makes it possible to weigh loans with unlike charges and durations against one another. For a loan repaid once, the calculation is: fee ÷ borrowed amount × (365 ÷ term in days) × 100.
A $45 cost on a $300 advance due in 14 days is 15% for that period. Over a full year the same rate repeats about 26 times, yielding roughly 391% APR. Short terms magnify the annual rate even when the flat fee looks small.
Under the Truth in Lending Act, the APR must be shown in your loan contract before you sign. Should the document’s figure vary from this result, inquire which fees are counted. Federal credit union PALs are limited to 28% APR, and 36% is a common state ceiling for small-dollar credit.
APR = (Fee ÷ Loan amount) × (365 ÷ Term in days) × 100Total to repay = Loan amount + Fee
Payday Loan APR Calculator: FAQ
How can a small fee produce such a high APR?
The calculation stretches the fee over a year. A 15% charge for 14 days happens about 26 times annually, yielding roughly 391% APR—yet you only pay that fee once if you repay on time.
Does APR mean the same thing as interest rate?
Not quite. APR folds in interest plus most finance charges, stated as a yearly rate. With payday loans the fee is the finance charge, so it alone determines the APR.
What is a fair APR cap for a small-dollar loan?
Federal credit union PALs may not exceed 28% APR, and numerous states view 36% APR as the borderline for affordable small loans. Annual rates in triple digits are viewed as extremely costly.
Does the tool assume I will roll the loan over?
No. It presumes you repay in full when the term ends. If you extend or renew, each extension adds another fee; switch to the rollover calculator to capture that scenario.