Payday Loan APR Calculator – Convert Fees to Annual Percentage Rate
Last updated: May 8, 2026
APR Formula (TILA Method)
APR = (Fee ÷ Loan Amount) × (365 ÷ Loan Term Days) × 100
Example: $15 fee on $100 for 14 days
= (15 ÷ 100) × (365 ÷ 14) × 100
= 0.15 × 26.07 × 100
= 391.07% APR
Use our interactive APR & debt calculator
Enter your loan details and get APR + total cost instantly.
Fee-to-APR Quick Reference Table
APR values for common payday loan fees per $100 borrowed, for 14-day and 30-day terms.
| Fee per $100 | APR (14-day term) | APR (30-day term) |
|---|---|---|
| $10 | 260% | 122% |
| $12 | 313% | 146% |
| $15 | 391% | 183% |
| $17.5 | 456% | 213% |
| $20 | 521% | 243% |
| $25 | 652% | 304% |
| $30 | 782% | 365% |
APR Comparison: Payday Loans vs. Alternatives
What the APR Reveals That Fees Hide
Payday lenders market their products using flat fees ("just $15 per $100") because fees sound small. $15 doesn't sound dangerous. 391% APR does—because it accurately reflects the cost of money over time.
The APR reveals that payday lending is more expensive than credit card cash advances by 13x–26x, more expensive than personal loans by 11x–65x, and more expensive than credit union PALs by 14x.
Federal law (Truth in Lending Act) requires lenders to disclose APR before you sign. If a lender only tells you the flat fee and refuses to state the APR, ask directly—or walk away. That's a red flag.
Frequently Asked Questions
How is payday loan APR calculated?
Payday loan APR = (Fee / Loan Amount) × (365 / Loan Term in Days) × 100. For a $15 fee on $100 borrowed for 14 days: (15/100) × (365/14) × 100 = 391.07% APR. This formula is required by the Truth in Lending Act.
Why is payday loan APR so much higher than credit card APR?
APR is an annualized rate. Credit cards spread interest over a full year; payday loans compress the same fee into 14 days. A $15 fee on $100 for 14 days is 15% for two weeks—which annualizes to 391%. A credit card at 24% APR charges only 0.92% for the same two-week period.
Is APR a fair way to compare payday loans?
APR is the federally mandated comparison metric and the only standardized way to compare all credit products. Lenders sometimes argue APR is misleading for short-term products, but consumer advocates counter that APR correctly reflects the annualized cost of capital and allows apples-to-apples comparison with alternatives.
What is a good APR for an emergency loan?
Credit union Payday Alternative Loans (PALs) are capped at 28% APR—an excellent rate for an emergency loan. Online personal loans typically range 6%–36% APR. Credit card cash advances run 20%–30% APR. Any rate under 36% APR is generally considered consumer-safe by policymakers.
Do payday lenders have to disclose APR?
Yes. The federal Truth in Lending Act (TILA/Regulation Z) requires all lenders, including payday lenders, to clearly disclose the APR before the borrower signs. If a lender refuses to state the APR or obfuscates it, that is a federal violation you can report to the CFPB.