Payday Loan Payoff Calculator
Payday Loan Payoff Calculator
See the true annual cost of a payday loan and how fast the fees add up if it is rolled over. Nothing is stored.
Why payday loans cost so much
A payday loan charges a flat fee for a short term, often two weeks. A fee of $15 per $100 sounds small, but over fourteen days it works out to an annual rate near 400 percent. The calculator converts the fee into a true APR so you can see the real cost, and shows how rollovers multiply it.
The rollover trap
When a borrower cannot repay in full, many pay just the fee and roll the loan over to the next period. Each rollover adds the fee again without reducing the amount borrowed, so the fees can quickly exceed the original loan. This is the cycle that makes payday debt so hard to escape.
Getting out of the payday cycle
Breaking the cycle usually means replacing the payday loan with something cheaper or resolving it as part of your wider debt. A payment plan, a lower-rate loan, a debt management plan, or debt settlement can each help, depending on your situation. Comparing the options is a sensible first step.
How this calculator works
This tool converts a payday fee into an annual rate: the fee per $100 as a percentage, multiplied by the number of terms in a year (365 divided by the term in days), gives the approximate APR. A $15 fee per $100 over 14 days is about 391%. It also multiplies the fee by the number of rollovers, since each rollover charges the fee again without reducing the amount borrowed, which is how the balance and fees compound.
Sources and references
These figures come from primary sources, which are updated as the rules change:
Frequently Asked Questions
What is the true APR of a payday loan?
A payday fee of $15 per $100 over a fourteen-day term equals an APR of about 400 percent. The calculator converts your fee and term into an annual rate so you can compare it to other credit, which almost always costs far less.
How does a payday loan rollover work?
If you cannot repay on the due date, many lenders let you pay just the fee and extend the loan. Each extension adds the full fee again without reducing the amount you borrowed, so the total fees grow quickly while the balance stays the same.
How much will a payday loan cost me?
It depends on the fee per $100, the term, and how many times it is rolled over. The calculator shows the fee for one term, the payoff amount, the true APR, and the total fees if the loan is extended.
How do I get out of payday loan debt?
Options include an extended payment plan from the lender, replacing the loan with lower-cost credit, a debt management plan through a nonprofit, or including the debt in a settlement program. The right path depends on your income and other debts.
Are payday loans worse than credit cards?
By cost, usually yes. Even a high-rate credit card is far cheaper than a typical payday loan, whose effective APR often approaches 400 percent. That is why replacing payday debt with almost any other option tends to save money.
Does CuraDebt make loans, and is it a lender or law firm?
CuraDebt is a free service that reviews the information you submit and, where appropriate and permitted by law, matches you with independent, licensed providers for debt relief or tax resolution. CuraDebt is not a law firm and does not provide legal or tax advice. Results vary and are not guaranteed.
Add this calculator to your website
This tool is free to use and free to embed. Copy the code below to place it on your own site; it keeps a link back to the source.
Related Resources
- All debt and tax calculators
- Debt consolidation loan calculator
- Debt settlement savings estimator
- Compare your debt relief options
