Find out the real cost of a payday loan. See the true APR hidden behind flat fees, what rollovers actually cost in total, and how much cheaper alternatives are for the same amount borrowed.
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Currency
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Payday Loan Cost Calculator
Section 1: Loan Details
$
The amount you want to borrow.
days
How long until the loan must be repaid.
days
Enter the exact number of days for your loan term.
Section 2: Fee Structure
$
The fee charged for every 100 borrowed. Common range: 10 to 30 per 100.
%
The total fee as a percentage of the amount borrowed.
Section 3: Rollover & Comparison
×
How many times to model the loan being extended.
%
Your credit card APR. Used to show alternative borrowing cost.
%
Representative APR on a personal loan for the same amount.
True Annual Percentage Rate (APR)
—
calculated from your fee and loan term
⚠
Rollover debt trap
Total Repayment (No Rollover)
—
principal + fee
Total Fee Charged
—
one-time cost
Fee as % of Loan
—
effective percentage cost
Cost per Day
—
fee spread over loan term
After Max Rollovers
—
total fees accumulated
% of Loan Lost to Fees
—
after max rollovers
💸 Payday Loan
—
—
same amount, same term
💳 Credit Card
—
—
same amount, same term
🏢 Personal Loan
—
—
same amount, same term
Rollover Cost Projection
Period
Days elapsed
Fee this period
Total fees paid
Principal still owed
Total if cleared now
Full Calculation Breakdown
Loan amount—
Loan term—
Fee charged—
Fee as % of principal—
Total repayment (no rollover)—
True APR—
Daily cost—
Total fees after max rollovers—
Credit card interest (same term)—
Saving vs payday loan (credit card)—
Saving vs payday loan (personal loan)—
Total Amount Owed at Each Rollover
Payday (principal + fees)
Credit card equivalent
Personal loan equivalent
✦ Cal, AI Explanation
Cal is reviewing your payday loan cost...
💬 Ask Cal about payday loan alternatives
Cal
Your payday loan cost is calculated. Ask me about cheaper alternatives, what the rollover trap means in practice, or how to avoid needing a payday loan next month.
⚠ Payday loan risks
A flat fee of $15 per $100 looks small but equals over 390% APR on a 14-day loan
Rolling over just once doubles the total fee cost without reducing the principal
Three rollovers on a $300 loan at $15 per $100 add $180 in fees alone
In the UK the FCA caps payday interest at 0.8% per day and total cost at 100% of the original loan
A credit union emergency loan or an overdraft at 40% APR is almost always cheaper than a payday loan
Payday lenders advertise costs as a flat fee per 100 borrowed rather than as an interest rate. A $15 fee on $100 sounds manageable, but when converted to an annual rate it reveals the true cost of the borrowing.
APR from a flat fee
Fee rate = Fee amount / Loan amount
Daily rate = Fee rate / Loan term in days
APR = Daily rate × 365 × 100%
Example: $15 on $100 for 14 days = (15/100) / 14 × 365 = 391.07% APR
This is simple APR, not compound APR. The compound (EAR) figure would be higher still.
How rollovers compound the cost
A rollover means paying the fee again to extend the loan for another period without reducing the principal. If you borrow $300 for 14 days at $15 per $100, the fee is $45. If you cannot repay and roll over three times, you pay $45 in fees each time, totalling $180 in fees while the original $300 is still fully owed.
Loan
Fee/100
Term
APR
After 3 rollovers
$300
$10
14 days
260.7%
$120 in fees
$300
$15
14 days
391.1%
$180 in fees
$300
$20
14 days
521.4%
$240 in fees
$300
$15
7 days
782.1%
$180 in fees
Frequently Asked Questions
Why is the APR so high if the fee seems small?+
APR expresses any borrowing cost as if the loan ran for a full year. A payday loan is typically 14 to 30 days, but APR assumes 365 days. A $15 fee on $100 for 14 days represents 15% of the principal over just 14 days. Extrapolated to 365 days, that is approximately 391% APR. The fee itself is not compounding across the year. APR is simply a standardised way of putting short-term costs on the same comparative scale as long-term loans, so borrowers can compare different products fairly.
What is a rollover and why is it dangerous?+
A rollover means paying the fee again to delay repaying the principal for another loan period. Each rollover adds the same fee without reducing what you owe. The danger is that repeated rollovers result in paying multiples of the original loan amount in fees while the principal stays the same. Many borrowers who intend to repay in two weeks find themselves rolling over repeatedly, accumulating fees that can eventually match or exceed the original loan amount.
Is a credit card cheaper than a payday loan?+
Almost always, yes. A credit card at 24.9% APR charges approximately 0.068% per day in interest. On a $300 balance for 14 days, that is roughly $2.85 in interest compared to $45 on a payday loan at $15 per $100. The credit card is dramatically cheaper for the same borrowing period. Even a cash advance at a higher rate is typically far cheaper than payday loan costs for short-term borrowing.
What are the alternatives to a payday loan?+
Options worth exploring before using a payday loan include: a credit union emergency loan, which typically has rates far below commercial payday lenders; a credit card cash advance; an arranged overdraft, even at 40% APR; asking your employer for a salary advance; or contacting a debt charity if the issue is a shortfall in essential spending. In the UK, credit unions offer emergency loans at rates well below payday lenders. In the US, CDFI credit unions often have emergency loan products under 18% APR.
Are payday loans regulated?+
Yes, in many countries. In the UK, the FCA caps payday loan interest at 0.8% per day, limits default fees at 15, and caps total cost at 100% of the original loan. In the US, regulation varies by state: some states ban payday loans entirely, others cap fees, and others have minimal restrictions. In the EU, high-cost short-term credit is regulated under consumer credit directives with specific caps in many member states. This calculator shows the cost of the loan you describe regardless of whether it exceeds regulated limits in your region.
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