See the true finance charge and the equivalent Annual Percentage Rate (APR) of a payday loan before you borrow.
Payday loans charge a flat fee for a very short term, which sounds small in dollars but translates into an extremely high Annual Percentage Rate (APR) once you annualize it - often into triple digits.
Effective APR (%) = (Fee ÷ Loan Amount × 100) × (365 ÷ Loan Term in Days)
A $300 loan with a $45 fee due in 14 days has a 15% fee, which works out to an effective APR of about 391%.
This tool is for educational comparison only and is not financial advice.
The flat fee per $100 borrowed applied over the short term, shown as an equivalent APR.
Small fees applied over a very short period compound to an extremely high annualized rate.
Credit union small-dollar loans or negotiating payment plans with creditors are often far less costly.