Payday Loan Calculator
Enter the loan amount, the flat fee charged by the lender, and the loan term in days. The calculator instantly shows you the true annual percentage rate (APR), the total finance charge, the full amount you must repay, and the cost if you roll the loan over one or more times. Switch the fee input between a dollar amount and a percentage of the loan so you can work from either the lender quote or the fee-per-hundred rate.
What is a payday loan and how does it work?
A payday loan is a short-term, high-cost cash advance that is typically due on your next payday, usually within 7 to 30 days. Lenders charge a flat finance charge instead of a traditional interest rate: the most common structure is $10 to $30 per $100 borrowed. Although the fee looks modest in dollar terms, the short repayment window makes the annualised cost extremely high. A $15 fee on a $100 two-week loan works out to a 391% APR, which is far above credit cards, personal loans, and virtually every other mainstream credit product. Payday loans are regulated at the state level in the US; some states cap fees at $10 per $100 while others allow $30, and a handful have banned the product entirely.
How to calculate payday loan APR
APR is the standard way to compare the cost of any credit product on an equal footing. For a payday loan the formula is: APR = (Finance charge / Loan amount) x (365 / Term in days). For example, a $400 loan with a $60 fee due in 14 days: $60 / $400 = 0.15, then 0.15 x (365 / 14) = 3.911, which is 391.1% APR. The formula makes the annualised cost of short-term loans look extreme because the same flat fee is charged every term, and there are roughly 26 two-week terms in a year. The fee stays the same every period, but the APR is calculated as if you borrowed and repaid at that rate for a full year, so the compounding effect is dramatic.
The danger of rollovers
Many borrowers cannot repay the full balance on the due date and choose to roll the loan over by paying only the finance charge. Each rollover extends the loan for another term at the same fee, adding to the total cost without reducing the principal. Rolling a $400 loan with a $60 fee over three times means paying $240 in fees, equal to 60% of the original loan, before the principal is even touched. The Consumer Financial Protection Bureau found that more than 80% of payday loans are rolled over or renewed within 14 days, trapping many borrowers in a cycle of debt. Use the rollover input above to see exactly what each extension costs.
Lower-cost alternatives worth considering
Before taking a payday loan, it is worth exploring: (1) Credit union payday alternative loans (PALs), which are capped at 28% APR and available in amounts from $200 to $2,000; (2) Bank small-dollar loans, which several major banks now offer with fees around $5 for every $100 borrowed; (3) Buy-now-pay-later or 0% credit card offers for specific purchases; (4) An advance on your paycheck from your employer's earned-wage-access benefit if one is available; (5) Local nonprofit emergency funds. Each of these carries a fraction of the cost of a typical payday loan.
Typical payday loan APR vs. other credit products
| Credit product | Typical APR range | Risk level |
|---|---|---|
| Savings account / personal loan (credit union PAL) | 6% - 36% | Low |
| Credit card | 17% - 29% | Low - Moderate |
| Bank small-dollar loan | 36% - 100% | Moderate |
| Payday loan (standard) | 200% - 400% | High |
| Payday loan (worst case) | 400% - 780%+ | Very High |
Annualised rates vary by lender and state, but payday loans consistently sit far above mainstream credit.
Frequently asked questions
How is payday loan APR calculated?
Divide the finance charge by the loan amount to get the period rate, then multiply by the number of such periods in a year (365 / term in days). For a $60 fee on a $400 loan due in 14 days: ($60 / $400) x (365 / 14) = 391% APR. Our calculator does this automatically.
Why is the APR on a payday loan so high?
APR is designed to put all credit products on the same annual footing. A payday loan is typically repaid in 14 days, so the flat fee is repeated roughly 26 times if you kept borrowing all year. The annualisation of a relatively small fee across many short periods produces a very large annual rate, even though the dollar cost for a single term looks modest.
What is a rollover and how much does it cost?
A rollover, also called a renewal or extension, lets you extend the loan for another term by paying only the finance charge. Each rollover adds another full fee without reducing the principal. If your fee is $60 and you roll over twice, you pay $180 in fees before the $400 principal is even repaid. The rollover input in our calculator shows the cumulative cost for up to 12 extensions.
What is the typical payday loan fee per $100?
Most lenders charge between $10 and $30 per $100 borrowed, with $15 per $100 being the most common rate. Some states cap fees at $10, others at $20 or $30. A $15-per-$100 fee on a 14-day loan equals a 391% APR.
Are payday loans legal everywhere in the US?
No. As of 2026, about 18 states and the District of Columbia have effectively banned payday loans by capping rates at 36% APR or lower, which makes the traditional payday loan model unviable. Other states allow them with varying fee caps. Always check your state's rules before applying.
How does this calculator handle different fee formats?
You can enter the fee three ways: (1) a flat dollar amount, such as $60; (2) a percentage of the loan, such as 15%; or (3) the per-$100 rate your lender quotes, such as $15 per $100. All three produce the same APR when the loan amount and term are the same. Switch the "Fee entered as" selector to match however your lender presented the charge.