Finance Calculators

Payday Loan Cost Calculator

Calculate the effective annual percentage rate (APR) of a short-term payday loan from its finance charge and repayment period.

Loan amount

Finance charge (fee)

Loan term

days

Effective APR —

Total repayment due —

About the Payday Loan Cost Calculator

Payday loans charge a flat finance fee for a very short borrowing period, which sounds small in dollar terms but translates into an extremely high annualized interest rate once expressed as an APR.

Formula: Effective APR = (Finance Charge ÷ Loan Amount) × (365 ÷ Loan Term in Days) × 100

A typical $45 fee on a $300 two-week loan works out to an APR well over 300% — comparing this figure against credit card or personal loan rates highlights just how costly payday borrowing can be.