Payday Loan APR Calculator

A payday loan APR calculator converts a flat fee on a short-term loan into an annualized percentage rate so you can compare the cost against credit cards and personal loans. Enter the loan amount, the fee, and the repayment term to see the true APR, total cost, and what happens if the loan is rolled over.

Payday Loan Calculator

Estimate the true cost of a payday loan (single-payment or installment), including APR, total fees, and rollover costs.

Loan Amount$500.00

$50$1,500

Fee Type

Fee per $100$15.00

$5.00$35.00

Loan Term14 days

7 days31 days

Total Due

$575.00

in 14 days

Finance Charge

$75.00

Cost to borrow

APR

391.1%

Annualized rate

Cost per $100

$15.00

Effective rate

Rollover Cost Projection

Rolled Over	Total Fees	Total Due	Days
1 time	$150.00	$650.00	28
2 times	$225.00	$725.00	42
4 times	$375.00	$875.00	70

This is an estimate for informational purposes only. Actual fees vary by lender and state. Many states restrict or prohibit payday loan rollovers. Always review your loan agreement carefully before signing.

How to Calculate Payday Loan APR

Payday loans do not charge interest in the traditional sense. Instead, the lender charges a flat finance fee that is due along with the principal on your next payday. Because the fee is expressed as a dollar amount rather than a percentage, borrowers often underestimate the true cost. The APR formula annualizes that fee into a rate that can be compared across all loan products.

Payday Loan APR Formula

APR = (Fee ÷ Loan Amount) ÷ Days × 365 × 100

Worked example (computed by engine): A $500 payday loan with a $75 fee due in 14 days produces an APR of 391.1%, a total repayment of $575.00, and a cost of $15.00 per $100 borrowed.

That 391% APR does not mean you pay 391% in interest. It means that if you paid a $75 fee every two weeks for an entire year, the cumulative fees would equal roughly 391% of the $500 principal. The APR is a standardized comparison tool, not a prediction of what you will actually pay, unless you roll the loan over repeatedly, which is where the real financial damage occurs.

Payday Loan Payoff Calculator

A payday loan payoff calculator projects what happens when you cannot repay the full amount on the due date and instead roll the loan over, paying only the fee to buy more time. Each rollover charges the full fee again on the original principal. The principal balance never decreases unless you pay more than the fee.

Rollover projection (computed by engine, $500 loan, $75 fee, 14-day term):

1 rollover (28 days): cumulative fees $150.00, total due $650.00 : you have paid more in fees than a credit card would charge in interest on the same amount.
2 rollovers (42 days): cumulative fees $225.00, total due $725.00 , nearly half the loan amount is now fees alone.
4 rollovers (70 days): cumulative fees $375.00, total due $875.00 : you have paid $300.00 in rollover fees alone, and the original $500 is still outstanding.

This is why regulators focus on rollovers. A single two-week payday loan is expensive but finite. Rolling it over converts a short-term expense into a long-term debt trap where fees compound without reducing the balance. Many states restrict or ban rollovers entirely.

How Much Does a $500 Payday Loan Cost

The table below shows the cost of payday loans at four common loan sizes, using a $15-per-$100 fee structure and a standard 14-day term. The APR is identical across all sizes because the fee scales proportionally with the loan amount.

Payday Loan Cost Comparison ($15 per $100, 14-day term)

$100.00 loan, 14 days$115.00 due (391.1% APR)
$300.00 loan, 14 days$345.00 due (391.1% APR)
$500.00 loan, 14 days$575.00 due (391.1% APR)
$1,000.00 loan, 14 days$1,150.00 due (391.1% APR)

At this fee structure, a $500 borrower pays $75.00 in fees over 14 days. That is a significant cost for a short-term advance. Actual fees vary by lender and state, and many states impose lower caps or prohibit payday lending entirely.

Installment Payday Loan Calculator

Some states permit installment payday loans, which spread repayment over several months using an amortizing schedule. Unlike a single-payment payday loan, where the full amount is due at once, an installment loan breaks the cost into equal monthly payments. The APR, however, remains extremely high.

According to the Texas Office of Consumer Credit Commissioner's 2025 Report on Availability, Quality and Pricing of Certain Financial Services and Consumer Loan Products (published December 1, 2025, covering 2024 data), payday loan APRs in Texas range from 365% to 496%. The OCCC's benchmark: a $1,500 payday loan carries 11 monthly payments of $457 plus a final payment of $1,957, with a finance charge of $5,486 and total repayment of $6,986, 4.7 times the amount borrowed.

The report also documents that Credit Access Business (CAB) fees are uncapped by state law, that the third-party lender's interest rate is 10% or less, that typical loan amounts range from $400 to $1,200, and that 2024 installment CAB fees totaled $1.3 billion statewide compared to $42.6 million in single-payment CAB fees.

Worked example (computed by engine): A $500 installment payday loan at 400% APR over 6 months produces a monthly payment of $202.75, total interest of $716.53, and a total repayment of $1,216.53. Switch the calculator above to “Installment” mode to see the full amortization schedule.

Source: Texas OCCC, 2025 Report on Availability, Quality and Pricing of Certain Financial Services and Consumer Loan Products (Dec. 1, 2025, covering 2024 data), occc.texas.gov. Last verified: July 2026.

Frequently Asked Questions

How is payday loan APR calculated?

Payday loan APR is computed by annualizing the flat fee over the loan term. The formula is: (fee ÷ loan amount) ÷ days × 365 × 100. A $75 fee on a $500 loan due in 14 days, for example, produces an APR of 391.1%. This high number reflects the fact that a two-week fee is being multiplied by roughly 26 to express it as an annual rate. It does not mean you pay 391% in interest, but it does make the cost comparable to credit cards and personal loans.

What happens if I roll over a payday loan?

Rolling over a payday loan means paying only the fee to extend the due date, typically by another 14 days. The original principal is not reduced. Each rollover adds another full fee, so rolling over a $500 loan with a $75 fee four times means paying $375 in fees alone, 75% of the amount you originally borrowed, over 70 days, and you still owe the full $500.

How is a payday loan different from an installment loan?

A traditional payday loan is a single-payment product: you borrow a lump sum and repay it plus a flat fee on your next payday (usually 14 days). An installment payday loan spreads repayment over multiple months, using an amortizing schedule where each payment covers both interest and principal. Installment loans carry APRs similar to single-payment loans but break the cost into smaller, more manageable payments.

What happens if I default on a payday loan?

Defaulting on a payday loan triggers late fees (in Texas, 5% of the payment amount or $7.50, whichever is greater, after 10 days), collections activity, and potential bank account debits if you authorized electronic access. The lender may also report the default to credit bureaus. Unlike title loans, payday loans are unsecured, so your property cannot be repossessed, but the fees and collection costs can quickly exceed the original loan amount.

Can I pay off a payday loan early?

Yes. Because single-payment payday loans charge a flat fee rather than accruing daily interest, there is no prepayment savings; the total due is the same whether you pay on day 1 or day 14. For installment payday loans, early repayment can reduce total interest, since interest accrues on the outstanding balance each month. Check your loan agreement for any prepayment penalties, though these are uncommon in payday lending.

Related Calculators

Compare payday loan costs against secured title loans with our Title Loan Calculator, or browse all tools on the Loan Calculators hub.

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