Payday loan cost calculator
A payday fee looks small because it is charged for two weeks at a time. Put in your own loan and the calculator turns it into an APR, adds up what the renewals have cost, and prices the same amount as a credit union loan.
APR on this loan
391%
Fees paid so far
$300.00
and you still owe $400.00 if every renewal was fee only.
- Period 5fee $60.00paid so far $300.00
- Period 4fee $60.00paid so far $240.00
- Period 3fee $60.00paid so far $180.00
- Period 2fee $60.00paid so far $120.00
- Period 1fee $60.00paid so far $60.00
The same $400 as a federal credit union payday alternative loan at the 28% maximum, repaid over 6 months: about $72.22 a month and $33.29 in interest in total, plus an application fee of up to $20.
How the numbers are worked out
APR here is the fee divided by the amount borrowed, scaled from the loan's length to a full year: fee ÷ amount × 365 ÷ days. A $15 fee on $100 for 14 days is 15 ÷ 100 × 365 ÷ 14, which is about 391%. Your loan agreement has to show the APR too; it should be close to this.
Renewals are counted as fee-only, which is how a rollover usually works: you pay the fee, the due date moves, and the amount you borrowed is still owed. If you paid down some of the principal along the way, you owe less than this shows.
The credit union figure uses the highest rate a federal credit union may charge on a payday alternative loan, 28%, with equal monthly payments over six months. Many charge less. The rules for those loans.
Know your state's rules
Some states require lenders to offer a payment plan. Check yours.