Payday Loan APR Calculator (True Cost)
A "$15 per $100" payday fee sounds small. Annualized, it is triple-digit APR. Enter the loan and fee to see the true rate and the cost of the rollover trap.
| Fee for one term | — |
| Total fees after rollovers | — |
| Fees as share of the loan | — |
Turning the fee into an honest rate
APR = (Fee ÷ Loan) × (365 ÷ Term days) × 100
"$15 per $100 for two weeks" = 15% per 14 days = 391% APR. For scale: credit cards charge 20–30%, personal loans 8–15%. The fee language exists precisely because "$60 fee" sounds survivable and "391% APR" does not — which is why federal law (TILA) requires the APR disclosure in the paperwork.
The rollover trap is the business model
Most borrowers cannot repay $460 out of the paycheck that could not cover $400 of expenses — so they pay the $60 fee and roll the loan. Four rollovers on the default example: $300 of fees, 75% of the amount borrowed, and the $400 debt still fully intact. CFPB research found the majority of payday loan volume comes from borrowers in sequences of 7+ loans.
Cheaper exits, in order
- Credit union PALs: payday alternative loans capped at 28% APR, $200–2,000.
- Card advance: even at ~30% APR it is a tenth the payday cost.
- Employer paycheck advance / EWA apps: often free or nearly.
- Negotiating the actual bill: utilities and medical billers offer payment plans that beat 391% by miles.
- Prevention beats all of it — even a starter emergency fund of $500 breaks the cycle.
Frequently asked questions
What is the APR on a payday loan?
The typical $15-per-$100, 14-day loan is 391% APR. State caps range widely; some states allow $30 per $100 — 782% APR.
Why do payday loans quote fees instead of rates?
Because the fee sounds small and the equivalent APR does not. Federal Truth in Lending rules still require the APR in the disclosure — read that line.
What happens if I roll over a payday loan?
You pay the full fee again to delay repayment; the principal never shrinks. Four rollovers on $400 at $15/$100 costs $300 in fees with the $400 still owed.
What are alternatives to payday loans?
Credit union payday-alternative loans (28% APR cap), employer advances, earned-wage apps, card advances, negotiating the underlying bill, or local assistance programs — all drastically cheaper than triple-digit APR.
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Last updated: 2026-07-08