## Payday Loan total cost and finance rates calculator.

**Calculate the cost of your Payday Loan to compare and find the best lender with the most affordable rates and fees. Just fill out the necessary amount and the repayment term to learn how much the cash advance will cost. It's free and easy and can save you a lot of money.**

### PayDay Loan Calculator

## Contents:

How is the cost of a Payday Loan calculated?

Why do I need a Payday Loan calculator?

## How is the cost of a Payday Loan calculated?

Any time you apply for a Payday Loan it’s essential that you:

- read carefully the rates and fees you are going to be charged, including the fine print
- use an online Payday Loan calculator to estimate the cost of your cash advance taking into account the amount and terms
- compare the prices for your Payday Loan from different lenders

Payday Loan Calculator is an online personal finance assessment tool to determine the interest and interest rate on the amount of Payday Loan you want to borrow. The key terms necessary to compare different payday lenders are:

**The principal**– the amount you are going to borrow,**Repayment term**(number of days) – the period within which you are to pay off the loan,**The APR**– “annual percentage rate, the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan”.**The MPR**– monthly percentage rate, which is practically the same as APR but charged for a month. It’s a more important criterion for calculating the cost of a Payday Loan as it’s mostly taken out for a month.**The total cost**– the amount of money you will have to pay for the loan in total including interest, financial charges, fees.

The formula used to calculate the total cost of a Payday Loan is:

Total cost = Principal + (Principal * (APR: 365 days x number of days): 100%)

For example, if you borrow $100 for 30 days with a representative APR of 35,5%, the total cost will be:

$100 + ($100 * 400%: 365 days * 30 days: 100%) + $7 origination fee = $109

## Why do I need a Payday Loan calculator?

Payday Loan calculator will help you to find out:

- how much you will pay in fees
- how much the total cost of a payday loan will be
- how much the APR is
- how much the financial charges will be

### What should I be aware of using a Payday Loan calculator?

- It’s only a representative model of calculation and actual cost may differ
- The cost is calculated on the basis of information you provide
- Don’t make a decision to apply for a loan according to the results of calculations solely. Take other important criteria into account
- Using a calculator doesn’t guarantee 100% approval for the loan
- Fees and rates are subject to a change
- There may be some additional fees such as a verification fee, documentation fee, etc which are not included into the calculations
- There are certain rules and regulations of financial charges for the loan in each state. Make sure you get to know them and take cash advance only from the licensed lender following these laws.

## Payday Loan payment calculator.

The average payday loan is $375. The interest, or “finance charge” , for a $375 Payday loan would be between $56.25 and $75, depending on the terms stated in the agreement. The maximum finance charge is stated by the state law and can also depend on the lender: usually it varies from 15% to 20%.

### How are finance charges for a Payday Loan calculated?

The amount of interest paid is calculated by multiplying the amount borrowed by the interest charge.

If you borrow $500 at the rate of 15%, it looks like this:

$500 х 15% / 100% = $75

It means for a $500 cash advance you will pay $75 in finance charges.

### Payday Loan interest rate and APR calculator. How are Payday Loan Interest Rates Calculated?

Sometimes you are informed about the cost of a Payday Loan but you don’t know how it was calculated and you want to compare different lending companies. For that you need to know the APR charged. To calculate the interest rate you are to divide the interest paid by the principal of the loan multiplying that by 365 days and divide that number by the length of repayment term, and multiply by 100%:

APR = financial charges / principal х 365 /repayment term х 100%

The APR for a $500 loan for 30 days = $75 / $500 х 365 days / 30 days х 100% = 182,5%