Payday Loan Cost Calculator
Convert a payday-style flat fee into an APR-equivalent and total repayment for a short-term loan, with a worked $300 two-week example and safer alternatives.
Results · USD
APR-equivalent (simple)
Total repay
- Fee cost
- $45.00
- Daily rate (simple)
- 1.0714%
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Educational estimates · not financial advice · free, no signup
How this was calculated
APR-equivalent ≈ (fee/amount/termDays)×365×100. Simple educational conversion — real disclosures may differ.
Want more detail? Full formula notes & FAQs ↓
Detailed guide
What it is, how to use it, how to read the numbers, common mistakes, a worked example, formulas, and FAQs.
What this calculator is
Payday loans charge a flat fee rather than a yearly rate, which hides how expensive they are. A $45 fee on a $300 loan for two weeks sounds small, but that is 15% of the loan in 14 days. Annualised, the equivalent is roughly 391%, which is far higher than most other forms of credit. This calculator converts the flat fee into an APR-style figure so you can compare it with other options, and shows the total you repay and the fee. The method is a simple, non-compounded conversion used for illustration; legal disclosures may differ by country. Rolling a payday loan over repeatedly multiplies the cost, so consider alternatives first.
When to use / who it helps
- You are offered a short-term loan with a flat fee and want to see its yearly equivalent.
- You are comparing a payday loan with a credit card cash advance or a personal loan.
- You want to see the total repayment.
- You are advising a friend on a quick loan.
- You are checking a lender's disclosure.
How to use
Steps
- Enter the amount you would borrow.
- Enter the fee or finance charge.
- Enter the term in days.
- Read the APR-equivalent and total repayment.
- Compare with other borrowing options.
- Consider whether you could repay without taking another loan.
How to interpret results
- The APR-equivalent annualises the fee to compare with yearly rates.
- Fee cost is the extra you pay beyond the amount borrowed.
- A very high APR-equivalent signals an expensive way to borrow.
- Rollovers or repeated loans add fees each time.
- Local law may cap or restrict these loans.
Common mistakes & gotchas
- Judging the cost by the fee amount alone.
- Ignoring the term when comparing loans.
- Rolling over the loan.
- Not comparing with cheaper alternatives.
- Assuming the simple APR matches the legal disclosure.
Worked example
Worked example — borrow $300 with a $45 fee for 14 days
- The fee is 45 ÷ 300 = 15% of the loan.
- Daily rate: 15% ÷ 14 ≈ 1.0714% per day.
- APR-equivalent: 1.0714% × 365 ≈ 391%.
- Total repayment: 300 + 45 = $345.
Result: A $45 fee for a two-week $300 loan equals about 391% APR; you repay $345.
To load the form's own demo values, tap Try example above the Calculate button.
How to calculate / formula
APR-equivalent ≈ (fee/amount/termDays)×365×100. Simple educational conversion — real disclosures may differ.
Frequently asked questions
Why is the APR so high?
The fee is charged over a very short term, so annualising it multiplies the rate.
What are alternatives to payday loans?
Options include asking an employer for an advance, community or credit-union loans, payment plans with creditors, or help from local assistance programs.
Does the APR here include compounding?
No. It is a simple annualisation for comparison.
What happens if I roll over the loan?
You pay another fee, which raises the cost.
Are payday loans regulated?
Rules vary by country and region.
Is this advice?
No. It is an educational calculation.