Payday Loans Calculator – a Useful Tool for Borrowers
Our payday loan calculator aims to help you decide what loan size is ideal for you and over what repayment term. By checking the APR of the amount you intend to borrow, you’ll ensure that’s the right solution for your financial worries.
We’ve designed our tool for small-dollar loans, up to $1,000. Plus, the repayment period shouldn’t extend over a month if you want to calculate the precise APR. Besides whole numbers, this payday loan calculator also allows you to insert decimal figures without using any commas or currency signs.
Overall, you’ll need no more than a minute to check your rates. There are only three values you need to add to find out your interest rate. Once you have the APR calculated, you’ll immediately know if you’re dealing with a loan shark. Additionally, you can use a payday loan calculator an unlimited amount of times by clicking on the ‘clear values’ button.
Note that the values in all segments must be positive. For example, if you want to borrow $300 with a $45 fee over 15 days, the tool will calculate an APR of 365%.
Once you’re aware of the numbers, you can select a loan term that suits you and leave the business to us. We’ll display precisely how much you’ll pay and what the total financial cost will be.
If the APR offer suits your financial plans, you’ll need to complete our online application form. Then, you can check if you got approved without affecting your credit score. Once you send in your official application, we will send your details over to our network of trusted payday lenders. Once you’ve chosen the loan that works best for you, the lender will deposit the funds into your account.
APR for Payday Loans and Advances
How to Calculate Payday Loan Interest Rates?
You can use our payday loan calculator to check the total interest rate or APRs you’ll get charged. Here’s how it works:
- Enter the loan amount: For instance, if you plan to borrow $500, you must enter that amount in the first field of the calculator.
- Enter the loan fees and repayment time: Next, add all the charges that come with the desired funds. The final step is to write the number of days in which you’re going to repay the loan.
- Press calculate to see the outcome: The calculated APR will be in percent and may, in some instances, shock you.
- To calculate another APR, hit ‘Clear values’ and then repeat steps 1-3 above: The calculator also enables you to use cents without the need for commas. Also, do not place the currency for dollars.
What Is a Payday Loan?
Payday loans are small-dollar advances of usually less than $1,000. These unsecured amounts of money entail high interest rates and a short repayment period. Therefore, you must repay the loan with your next paycheck or between one and four weeks.
Lenders can sometimes extend the loan’s terms if they believe the borrower will access more significant funds. Once approved, borrowers use payday loans to cover essentials such as rent, utilities, or foot a medical bill. Besides, you can always spend the payment to organize a shower party or go on a short trip.
Payday loan operators also cater to customers with poor credit scores or no credit at all. So if you have no access to fast money, feel free to turn to a cash advance company. Different lenders use various methods to define the interest rate and APR that can reach 400%.
Finally, though customers reckon that payday loans include unfavorable interest rates for any high-risk borrower, this is not always the case. On the contrary, the cost is typically low and fixed, as witnessed by cost calculators. Even better, most US states regulate and limit payday loan interest rates and fees.
How Does a Payday Loan Work?
Payday loans are different from average consumer loans. Depending on your state of residence, you can either apply online or through a physical branch. Before anything, you must decide how much finance you want and whether you can pay back on time. You should also familiarize yourself with the total interest rate and fees your lender charges.
After applying online, you will get an instant decision. Once approved, expect the assets deposited into your bank account within one business day. You’ll then need to repay the total borrowed amount borrowed plus the finance cost by its due date.
The finance charge you’ll owe generally depends on the loan amount. Moreover, since payday loans have short repayment terms, the financial cost is fixed. Yet, if you want to translate these costs into APR, you’ll realize it’s over 400%.
What Are the Payday Loan Monthly Fees?
Most payday loans charge a fixed amount per $100 borrowed. More precisely, a lender can impose from $10 to $30 for lending you $100. The cost depends on your state regulations and the maximum amount borrowed. On average, you’ll pay $15 per $100, accounting for an annual percentage rate of nearly 400% for short-term loans. So, if you borrow $300 before your next paycheck, you will pay $345 back, assuming a fee of $15 per $100.
As for any outstanding loan amount, most payday lenders charge a fixed percentage. Meaning, you get to pay a monthly fee on the loan balance every 30 days from the first day you take the payday loan. This monthly cost aims to reduce their risk further and improve their return on investment. Usually, the fee ranges from 4% to 10% of the outstanding loan balance every 30 days.
For instance, if you take the loan for less than 30 days, you pay the monthly fee once. But if you extend the loan beyond 30 days, you’ll pay another monthly fee. Hence, ensure you also calculate the percentage charged as a fee, not only the interest rate.
Payday Loan Alternatives
When strapped for cash, a payday loan calculator may seem like your last resort. Yet, even if you take a tiny amount to cover an emergency, a payday loan may not always resolve your financial worries. Here are several alternatives to consider when you need to provide cash quickly.
Ask for a Loan From Family or Friends
Getting money with no interest rate is not an easy feat, but it’s feasible. Hence, consider asking a close relative or friend to borrow you for a short time. Covering your bills or paying your month’s rent this way won’t hurt your credit score, but it may affect your pride.
Once the friend agrees, it’s advisable to calculate the loan terms. The agreement should define when the loan will get repaid and whether it will entail some interest. The best thing about family member loans is the lack of income or physical collateral. Still, you could be putting your strong bond in jeopardy in case something goes wrong.
Use a Credit Card
If you possess a credit card and haven’t maxed it out, consider using it for essential purchases. You can even withdraw some cash with it, but only as a last resort since they can prove expensive. Overall, a credit card allows you more time to repay and break payments into manageable parts.
Remember that credit cards have interest rates that range from 15% to 30%. So to keep the expenses down, payback as much as you can each month. Also, don’t get tempted to spend more than you can afford to pay back.
Get a Pawnshop Loan
Getting cash without the need to sell anything and no credit checks is possible. All you need to do is visit the local pawnshop. There, you will hand something you own in exchange for dollars. Before accepting the item, the pawnshop will assess its value and the loan amount.
To get the pledged item back, you should pay off the loan in full, plus any other interest or fees. The repayment term usually stretches up to a month. However, remember that such assets are not a long-term solution. If you’re taking pawn products regularly, think about other ways to strengthen your financial position.
Sell Your Stuff
Visit eBay or Craiglist if you have some valuable stuff you don’t need anymore. For example, you may sacrifice your piano or guitar if it catches dust in the basement. Or sell sports equipment and tools you no longer use. For a quick sale, organize a yard sale and get to sell multiple items at once.
Some selling options may take longer, mainly if the competition is tough. The speed of selling will depend on the price tag you select. Indeed, selling collectibles online could take a few hours for rare items to a few weeks. Finally, you can sell old baby equipment to your neighbors at half price.
Request an Extension
Talk to your lender about extending the due date of your loan. To do so, call your creditor and let them know the minute you realize you won’t be able to make your payment. Many will agree to extend your due date without charging late fees or reporting you to Equifax, Experian, or Transunion. You can do the same thing with utility or phone services.
Get an Advance From Work
If you need urgent money before payday, consider asking your employer to give you an advance on your income. If you’re expecting your first payment or your paycheck is late, ask the company adviser for a short-term loan.
Once you receive your benefit payments, the employer will get their money back. Plus, you don’t need to pay any interest on the funds. Overall, advances from work aren’t loans since they will get deducted when the next paycheck arrives.
Reduce Your Expenses
The golden rule to get hold of extra cash is to decrease your monthly expenses. Once you eliminate a fraction of your bills and subscriptions, your income will get an instant boost that month. For example, start sharing a flat with a roommate, use public transport rather than a car, or get rid of your cable TV. Other ways to reduce monthly outflow are to skip dining out and expensive holidays.
Second, you can take on a side gig or raise your working hours. Then, after boosting your cash flow, think about investing the extra money.
Apply for an Online Personal Loan
Personal loans are traditional lending arrangements structured to help you buy or refinance something specific. If you need money for a definite purpose, a personal loan could be a much cheaper alternative to a payday loan. Note that you’ll get a repayment schedule.
Today, many online lenders offer various personal loans. Plus, they allow you to do calculations on the rates and terms you qualify for without a hard credit check. Though these options don’t offer same-day funding as a payday loan, some personal products can hit your bank account within a few days.
Moreover, people use personal loans to consolidate debt. Others exploit them for significant medical expenses or home repairs at a fixed price. So when you have defined costs or specific projects, go with a personal loan.
Get a Traditional Loan From a Bank or a Credit Union
Whatever your preferences, do not skip the offers of local banks. They may be notorious for slow processing and strict criteria, but it may be well worth it since rates are more affordable.
Unlike banks, credit unions are non-profit, member-owned institutions. Thus, you may find cheaper rates for credit union personal loans. Also, unions tend to have less stringent eligibility requirements, so you might qualify to borrow money even with bad scores. Note that this option requires you to be a credit union member.
Take out an Installment Loan
Installment loans are more flexible options. These financial products allow you to spread your repayments over more extended periods. So there is no need to repay everything in full on your next pay date. As a result, you may have more time to get your finances back on track.
With us, you can select exactly how many installments you want to have. So, if you opt to repay over six installments or a year, you can certainly do so.
Benefits to Payday Loans
Above all, you must get to know how loans work. Here’s why some people turn to a payday loan:
- Easy access: The most prominent advantage of payday loans is that they allow instant access to cash. Many payday lenders enable their clients to use the approved money within 24 hours of the lending decision. Even more, any trusted payday lender would be available around the clock and offering online applications. Unlike those of banks, payday loan applications can take as little as five minutes.
- Fewer eligibility requirements: Contrary to conventional personal loans, fast advances have fewer criteria you need to satisfy. Typically, you can provide the necessary proof on a short note and from the comfort of your home. Still, keep in mind that any additional requirements are there to protect you from scams.
- No credit checks: Unlike traditional loans that approve assets to good credit only, payday loans don’t pull your credit. In short, a payday lender won’t run a hard credit inquiry but only soft credit checks. As a result, payday products can’t help you build your credit to get access to better-termed financial products in the future.
- Unsecured funds: Unlike car title loans or mortgages, payday loans don’t require any collateral, such as your car. So, if you default, the payday lender can’t seize your property. While unsecured, some payday lenders can access your bank account, which is a different type of risk.
Drawbacks to Payday Loans
No cash product comes without risks. The following are the most significant cons of an average payday loan:
- High cost: Depending on the state, payday loans have high interest rates of about 400%. For comparison, most personal loans charge an interest rate between 6% and 36%, while credit card interest ranges from 15% to 30%.
- Right to access your bank account: Some payday lenders claim this lending practice will save you the hassle of writing post-dated checks. But when the loan is due, and you have no sufficient funds in your account, the payday lender can make repeated attempts to withdraw. This process may result in multiple overdraft charges of $35 or more.
- Debt collection: Some payday lenders act as ruthless debt collectors. If you can’t pay your debt, prepare for threats and late-night calls. Lenders can also send your debt to collections or take you to court over outstanding balances.
- Short-term solution: Payday loans serve to help you out only in emergencies. Hence, if you have more severe financial issues, rule them out. Finally, payday loans won’t help you build your credit because they don’t report to the credit bureaus.
What if I Can’t Repay My Payday Loan?
Use reliable payday loan calculations to ensure you can afford to repay the loan. Being 100% sure about what obligations you’re undertaking is a must to avoid defaulting on the loan.
In short, borrowers who can’t settle the original debt after two weeks usually roll the loan over. Unfortunately, rolling over entails extra cost and APR for an increased amount. Luckily, some states ban rollovers or impose “cooling-off periods” for borrowers who have taken out a loan before requesting another one.
Moreover, if you can’t repay the loan, your interest rate will soar over 500% and then rise every time you can’t repay the debt. Finally, if you can’t repay your loan, your account may end up at a collection agency, which will damage your credit.