Total Fees
Total Repayment
Effective APR
Cost per $100
| Term | Fee Paid | Cumulative Fees | APR This Term |
|---|
Payday Loan Fees: A Comprehensive Guide
The Payday Loan Fee Calculator reveals hidden costs with fees, total repayment, and sky-high APR (often 300-700%). Include rollovers for debt trap simulation. This free tool warns on high costs and suggests alternatives. Guide explains mechanics, regulations, risks, and escape strategies.
What is a Payday Loan?
Short-term, high-fee advance on paycheck. Typically $100-1000, due in 14 days, post-dated check or ACH.
How Fees Work
Flat fee ($10-30 per $100) or %. No interest, but equivalent APR enormous due to short term.
Why So Expensive?
- Short Term: Fees annualized = high APR.
- Risk: No credit check, high default.
- Rollovers: Extend with more fees, cycle.
Link to APR Calculator.
Calculating Costs
Steps:
- Fee: Amount × rate or flat.
- Repay: Amount + fees.
- APR: (Fees / Amount) × (365 / days) × 100.
- Rollover: Add fees each term.
Example: $500, $75 fee (15%), 14 days → $575 repay, ~391% APR.
Regulations
Varies: Some states cap 36% APR, ban rollovers; others no limits. CFPB oversees.
Risks and Traps
- Debt Cycle: 80% rollover.
- Overdraft/Bank Fees: Bounced payments.
- Credit Damage: Collections.
- High Cost: $15/$100 = 391% APR.
Alternatives
- Credit Union PALs: Lower rates.
- Personal Loans: Installment, better APR.
- Credit Cards: Cash advance cheaper.
- Employer Advance: No fee.
- Emergency Fund: Build savings.
Use Personal Loan.
Tips to Avoid
- Budget: Track expenses.
- Read Fine Print: All fees.
- Pay On Time: Avoid rollover.
- Seek Help: Credit counseling.
Common Mistakes
- Underestimating APR: Think flat fee cheap.
- Multiple Loans: Compound debt.
- Ignoring Alternatives: Easier options.
Conclusion
Payday loans are costly last resorts. Our calculator shows true impact—use for awareness. Explore Debt Consolidation or Loan Comparison.