See the real cost of a payday loan: total fees, true APR (often 300-500%), and what the same loan would cost with a credit card. Avoid the debt trap.
A rollover (renewal) means you pay the fee again to extend the loan for another term — the principal never shrinks. Enter how many times the loan is rolled over to see the total fees you will pay. The table below shows the cost of 0–4 rollovers.
| Rollovers | Total Fees Paid | Total Repayment | Extra vs. One-Time Fee |
|---|
Situation: You borrow $300 for 14 days at a typical $15 fee per $100 borrowed.
Calculation: Total fee = $300 × 15% = $45.00. Total repayment = $300 + $45 = $345.00.
True APR: ($45 ÷ $300) × (365 ÷ 14) × 100 = 391.07%. Cost per day = $45 ÷ 14 = $3.21.
Comparison: The same $300 on a credit card at 25% APR for 14 days would cost only $2.88 in interest.
Situation: You borrow $500 for 14 days at the same $15 per $100 fee.
Calculation: Total fee = $500 × 15% = $75.00. Total repayment = $500 + $75 = $575.00.
True APR: ($75 ÷ $500) × (365 ÷ 14) × 100 = 391.07% — the APR stays the same because the fee rate and term are identical.
Comparison: The same $500 on a credit card at 25% APR for 14 days would cost only $4.79 in interest.
Situation: You cannot repay the $300 loan on payday, so you roll it over (renew) 3 times, paying the $45 fee again each time.
Calculation: Total fees = $45 × (3 + 1) = $180.00. Total paid = $300 + $180 = $480.00 — and you still owe the original $300 until the final payment.
Note: After 3 rollovers you have paid $180 in fees on a $300 loan (60% of the principal) without reducing the balance by a single dollar.
Total Fee = the dollar fee charged for the loan term
Loan Amount = the principal you borrow
Loan Term = number of days until repayment (typically 14)
Example: $300 loan, $45 fee, 14 days → (45 ÷ 300) × (365 ÷ 14) × 100 = 391.07%
Payday lenders charge a flat fee per $100 borrowed rather than an interest rate — commonly $15 per $100 for a two-week loan. Because the term is so short, that small fee annualizes into a huge APR. A $15 fee on a 14-day loan is the equivalent of a 391% annual rate. The table below shows common fee structures and their true APRs over a 14-day term.
| Fee per $100 | Fee on $300 | True APR (14 days) |
|---|---|---|
| $10 | $30.00 | 260.71% |
| $15 (most common) | $45.00 | 391.07% |
| $17.65 | $52.95 | 460.16% |
| $20 | $60.00 | 521.43% |
Payday lending is regulated state by state. Most states that allow it cap the fee at roughly $10–$20 per $100 borrowed, while about a dozen states effectively ban high-cost payday lending with interest-rate caps of 36% or lower. Federal law also caps payday loans to active-duty military members and their dependents at 36% under the Military Lending Act. Always check your state's rules — and remember that even a "legal" $15-per-$100 fee still works out to a 391% APR.
Federal credit unions offer small loans of $200–$1,000 with fees capped so the APR stays around 28% — a fraction of a payday loan's cost.
Even a 25% APR card is dramatically cheaper than a payday loan: on $300 for 14 days, the card costs about $2.88 vs. $45 for a payday loan.
Ask for an extension, a payment plan, or reduced late fees. Creditors often prefer a workable arrangement over you defaulting.
Employer paycheck advances, local charities, and utility assistance programs can bridge a shortfall without triple-digit interest.
Payday loans are marketed as a quick fix for a short-term cash crunch, but the price tag is staggering. A typical loan charges $15 per $100 borrowed for a 14-day term. On a $300 loan that is a $45 fee — which sounds manageable until you annualize it. Because the money is only borrowed for two weeks, that $45 fee is the equivalent of a 391% APR. Credit cards, by contrast, average around 25% APR, and even the most expensive cards rarely exceed 36%.
The gap matters enormously in dollar terms. Borrowing $300 for two weeks costs $45 with a payday lender but only about $2.88 in interest on a credit card at 25% APR. The payday loan is more than 15 times more expensive for the exact same borrowing need.
$45 fee on $300 for 14 days (391% APR). Flat fee per $100, due in full on your next payday. Rollovers pile fee on top of fee without reducing the principal.
~$2.88 interest on $300 for 14 days (25% APR). Interest accrues daily on the balance, and you can pay over time instead of in one lump sum.
~$3.23 on $300 for 14 days (~28% APR). Small-dollar loans from federal credit unions capped near 28% APR with application fees limited to $20.
Often $0. A written agreement with a clear repayment date can be the cheapest and most flexible option — just honor the terms.
The single biggest trap with payday loans is the rollover. When you cannot repay on payday, the lender lets you "renew" the loan by paying the fee again — but the $300 principal stays exactly the same. Roll a $300 loan over three times and you will have paid $180 in fees (60% of the principal) and still owe the full $300.
Example: $45 fee rolled over 3 times → $45 × 4 = $180 in fees.
Total paid = $300 + $180 = $480, with the $300 principal still outstanding.
⚠️ Payday loans are among the most expensive borrowing options available. A typical $300 loan at $15 per $100 for 14 days costs $45 in fees — a 391% APR, and rollovers multiply that cost without reducing what you owe. Most borrowers who take a payday loan end up renewing it, and many are still in debt months later. This calculator is provided for educational purposes only: the results are estimates based on the inputs you enter, not financial advice. Before borrowing, exhaust every cheaper alternative — credit union loans, card cash advances, employer advances, creditor payment plans, and assistance programs.