Payday Loan Calculator

Payday Loan APR Calculator

Using a Loan Calculator is a great way to estimate what the interest rate or APR is for the payday loan amount you are seeking. Here are a few approximate definitions about key lending terms:

• The principal – referred to as the amount you borrow.
• Repayment term (# of days) – the time when you must repay your loan.
• APR (Annual Percentage Rate) - the annual rate charged for borrowing any given amount. APR is expressed as a percentage that represents the annual cost of a loan.
• The total cost – what you have to pay for your loan, including all fees.

How Is the Cost of a Payday Loan Calculated?

The formula used to calculate the Annual Percentage Rate of a loan is based on the example below:

• Divide the finance charge ($60) by the loan amount ($300).
• Multiply the result (0.2) by the number of days in the year (365).
• Divide the total (73) by the term of the loan in days (30).
• Multiply the result (2.433) by 100 and add a percentage sign = 243.33%.

Be Aware!

What Should I Be Aware of When I Use an Online Payday Loan Calculator?

• It’s only a sample of the calculations; actual costs may vary.
• The costs are calculated based on the information you provide.
• You should not make decisions about a loan based on the loan calculator.
• Using a calculator is not a factor in getting a loan approved.
• Fees and rates are subject to frequent changes and the state you reside in.
• There may be other fees: for example, a verification fee, a documentation fee, and others, so ask your lender about all fees you may have to pay.

*There are different rules and regulations in every state. Make sure you visit your state’s website and review the applicable regulations.

How Does an Online Payday Loan Work?

• You complete an online loan request form. You will need to provide information about your earnings, workplace, bank, etc.
• Loan amounts vary from $100 to as much as $1,000, depending on laws in your state. If approved, you receive cash as soon as 1 business day.
• Your payment is usually due on your next pay date, which typically is about 2 weeks.
• You may be required to post-date a personal check or give the lender electronic access to deposit and withdraw funds from your bank account.
• Payday lenders often charge fees of $15-$20+ for every $100 you borrow.

Considerations When You Get a Payday Loan

• Affordability: Make sure getting a loan is what you need. Make sure that you can afford to make the repayment of the loan on time.
• Loan Docs: Take the time to read and understand your loan agreement.
• Interest Rates/Fees: Carefully check the lender fees. The fees may seem low, but the actual interest rate will probably be high. Payday loans are not meant to be paid over a long period of time. They are emergency loans.
• Borrow What You Need and Repay It on Time: Make sure you borrow just the money you need. Paying your loan on time will relieve any potential stress.