About the Payday Loan Calculator
This payday loan calculator converts the flat fee a payday or cash-advance lender charges — usually quoted as “$15 per $100 borrowed” — into an annual percentage rate (APR) you can compare with a credit card, personal loan or credit union offer. It also shows the total you must repay on your next payday and how the cost multiplies if you roll the loan over instead of repaying it.
A typical two-week payday loan with a $15 fee per $100 works out to an APR of almost 400%. Because the fee is charged again every time the loan is renewed, borrowers who roll a loan over several times can pay more in fees than they originally borrowed. Seeing that number in advance is the best protection.
The calculator assumes the fee is charged once per loan period and that each rollover repeats the same fee on the same principal. State laws cap fees and limit rollovers in many places, so your lender’s disclosed terms take precedence.
With the default inputs, the annual percentage rate (apr) is 391.07%. Change any value above to recalculate instantly.
How to use the payday loan calculator
- 1Enter the amount you plan to borrow.
- 2Enter the fee the lender charges per $100 borrowed.
- 3Enter the loan term in days (usually until your next payday).
- 4Add rollovers to see how the cost grows if you cannot repay on time.
- 5Compare the APR with alternatives such as a credit union payday alternative loan.
Formula and method
Payday lenders charge a flat finance charge rather than interest on a declining balance. The APR annualizes that charge: divide the fee by the amount borrowed to get the cost per loan period, then multiply by the number of such periods in a year (365 ÷ term in days). This is the same simple-interest method required on US Truth in Lending disclosures for these loans.
A rollover or renewal pays the fee again to push the due date back one more term, without reducing the principal. Total fees therefore grow as fee × (rollovers + 1), and total repaid is the original amount plus all fees.
- Fee
- Finance charge per loan period
- Amount
- Amount borrowed
- days
- Length of each loan period (often 14 days)
Worked examples
$400 for 14 days at $15 per $100
The fee is $15 × 4 = $60, so you repay $460 in two weeks. $60 ÷ $400 is 15% per 14 days; multiplying by 365 ÷ 14 gives an APR of about 391%.
The same loan rolled over four times
Each rollover costs another $60 without reducing the $400 owed. After four rollovers (70 days in debt) fees reach $300, so you repay $700 for a $400 loan.
$500 for 30 days at $20 per $100
A $100 fee on $500 for a month is 20% per 30 days, or about 243% APR — lower than a two-week loan, but still many times the rate of a credit card.
Frequently asked questions
How do you calculate the APR on a payday loan?+
Divide the fee by the amount borrowed, multiply by 365, divide by the loan term in days, and multiply by 100. A $15 fee per $100 for 14 days is (15 ÷ 100) × (365 ÷ 14) × 100 ≈ 391% APR.
Why is payday loan APR so high?+
The fee is charged for a very short period, usually two weeks. Annualizing a 15% charge for 14 days means paying it about 26 times a year, which produces an APR near 400%.
What happens if I roll over a payday loan?+
You pay another full fee to extend the due date, but the amount you owe does not go down. Repeated rollovers are how many borrowers end up paying more in fees than they borrowed.
What are cheaper alternatives to a payday loan?+
Options include federal credit union payday alternative loans (PALs, capped at 28% APR), a small personal loan, a paycheck advance from your employer, a payment plan with the bill’s creditor, or a credit card cash advance, which is expensive but usually far cheaper than a payday loan.
Are payday loans legal in every state?+
No. Some states ban them or cap rates at levels that make them unavailable, while others set fee limits, maximum loan sizes and rollover restrictions. Check your state regulator’s rules before borrowing.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.