How this calculator works
A payday loan charges a flat fee, so its APR is the fee as a share of the loan, scaled to a year: APR = fee ÷ amount × 365 ÷ days. Rolling the loan over pays the fee again for another term while the amount you owe stays the same. The comparison line is simple daily interest on the same amount at a card's APR for the same days.
- APR = fee ÷ amount borrowed × 365 ÷ days × 100.
- Fee per $100 = fee ÷ amount × 100.
- With rollovers, total fees = fee × (rollovers + 1) and the amount you owe stays the same. The card line is simple interest on the same amount: amount × APR × days ÷ 365.
Worked example
With these inputs: amount borrowed $400; fee charged $60; days until it's due 14; times rolled over 0; card apr to compare 24%.
The result is annual percentage rate (apr) 391.1%, with fee per $100 borrowed $15.00 and repay on day 14 $460.00. Rolling over is where the cost piles up: each renewal pays the fee again and the amount you borrowed doesn't go down. If a bill is the reason, ask the biller for a payment plan or a new due date first.
Rollovers are where the cost grows
If you can't repay on the due date, some states let the lender roll the loan over: you pay the fee, the due date moves out, and you still owe the full amount. Roll the $400 example over three times and you've paid $240 in fees over 56 days and still owe $400. The table under the result shows each step.
For comparison, the same $400 on a 24% card for 56 days would cost about $14.73 in interest. Cards aren't cheap, but they're not in the same range.
Before you borrow for a bill
Most people use a payday loan to cover a bill that's due before payday. Ask the biller first: many utilities, phone companies and lenders offer a payment plan, a short extension or a new due date. Compare the late fee itself with the late payment fee calculator; it's often smaller than a payday fee.
Other places to ask before a payday lender: your employer (some offer pay advances), your bank or credit union (some offer small-dollar loans), and the biller itself. This calculator only shows costs; it isn't advice on whether a specific loan is right for you.
Sources
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 number of days, and multiply by 100. A $60 fee on $400 for 14 days is 391.1%.
How much does a $400 payday loan cost?
With a $15 per $100 fee it's $60, so you repay $460 on the due date. Each rollover adds another $60 while you still owe the $400.
What happens if I roll over a payday loan?
You pay the fee again and the due date moves out, but the amount you borrowed doesn't go down. Three rollovers on the example add $180 on top of the first $60 fee.
Is a payday loan cheaper than a late fee?
Often not. Enter your bill's late fee in the late payment fee calculator and compare it with the payday fee before deciding.
Are payday loan fees the same everywhere?
No. The CFPB says charges commonly range from $10 to $30 per $100 depending on state law, and some states don't allow payday loans at all.