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Tools & MoreFinancial CalculatorsPayday Loan Calculator - How Much Will Your Payday Loan Cost You?

Payday Loan Calculator – How Much Will Your Payday Loan Cost You?

Are you considering taking out a payday loan but unsure of how much it will cost you? A payday loan calculator can help you determine the total cost of your loan, including the interest and fees, so you can make an informed decision.

In this article, we’ll explain how to use a payday loan calculator and provide some helpful tips for calculating the cost of your loan.

Whether you’re facing a financial emergency or looking to bridge the gap between paychecks, this information will be valuable to you.

Keep reading to learn more!

If you are thinking of taking out a payday loan, you need to be aware of the potential costs and consequences. This payday loan calculator will help you to estimate the fees and charges you may incur.

Payday loans are generally for small amounts of money, typically $500 or less. They are typically due on your next payday, and the loan plus fees and interest are typically withdrawn from your bank account automatically.

If your loan repayments won’t be on time, you may be charged additional hidden fees and interest, and the lender may start collection proceedings against you.

Before you take out a payday loan, be sure to understand the fees and loan terms, and be sure you can repay the loan on time. Use this calculator to estimate the costs of a payday loan.

USE THIS PAYDAY LOAN CALCULATOR

Payday Loan Calculator

HOW TO USE THE CALCULATOR

example of how to use payday loan calculator payday loan calculator

How To Use The Above Payday Loan Calculator

Step 1 – Loan Amount

Enter the loan amount, in terms of dollars you are borrowing

Step 2 – Finance Charge

Enter the finance charge in terms of dollars if you know it. If not, you can enter the APR % in step 4 and the calculator will calculate the finance charge for you.

Step 3 – Loan Term

You can choose days, weeks, or months in the drop down menu

Step 4 – APR %

Enter the APR, or annual percentage rate, if you know it as a percentage. If not, you can enter the finance charge in step 2 and the calculator will calculate the APR for you.

Step 5 – APR Amount

If you know this amount, which is unlikely, feel free and enter it in. If not, let the calculator do the calculation for you.

Step 6 – Monthly Fee Percent or Monthly Fee

The odds are you may know one of these, but not both. That’s OK – enter what you know and let the calculator do the rest of the heavy lifting for you.

Step 7 – Total Debt

Let the calculator take care of this for you – this will be the total amount that you will have to pay back to the payday lender.

Supply:

  • 2 minutes of your time

Tools:

  • This payday loan calculation

Materials: Your loan terms

“If you would know the value of money, go and try to borrow some.” 

—Benjamin Franklin

Payday Loan Calculator

The payday loan calculator is a tool that helps you calculate the interest you will pay on a short-term payday loan. The calculator will also help you determine the loan amount and the repayment term.

To use the payday loan calculator, you will need to enter the following information:

  • The amount of cash you want to borrow, the loan amount
  • The annual percentage interest rate (APR), or finance charge. Calculate the APY Here
  • The length of time of your loan repayments

Once you have entered this information, the calculator will provide you with an estimate of the interest you will pay on the loan to the payday lender.

RELATED

Pros & Cons Of Using a Payday Loan Calculator

Pros of payday loan calculators:

  1. They can help you determine the total cost of your payday loan, including the interest and fees.
  2. They can provide a quick and easy way to compare the costs of different payday loans.
  3. They can help you make an informed decision about whether a payday loan is the right option for you.

Cons of payday loan calculators:

  1. They may not take into account all the fees and charges associated with a payday loan.
  2. They may not consider your individual financial situation, such as your income and expenses.
  3. They may not provide accurate estimates if the interest rates or fees on your payday loan change over time.

Payday Loan Settlement Calculator

How do you calculate payday loans?

The APR, or annual percentage interest rate, for payday loans is calculated fairly easily.
1) Divide the amount of interest you will pay, by the amount of loan you borrowed.
2) Next, you will multiply the result from step 1 by 365.
3) What is your loan repayment terms? Take the number from step 2 and divide that number by the loan repayment term
4) The last step is to multiply this most recent number by 100 to get a percentage.

How much interest do you pay on a payday loan?

The finance charge ranges from $15 to $30 to borrow $100.
It is very common for a loan to typically charge 400% annual interest (APR) or even more.
A shorter term loan generally has even higher APRs.

How to calculate APR on payday loans

When you’re trying to figure out the APR on a payday loan, it’s important to use a payday loan APR calculator. This will help you to determine the true cost of the loan and compare it to other debt relief options.
The first step is to enter the loan amount and the length of time you need to repay the loan.
Then, you’ll need to enter the fees associated with the loan. These can include the origination fee, the application fee, and the late payment fee.
Next, you’ll need to enter the loan interest rate.
Finally, you’ll need to enter the repayment schedule. Most payday loans have a two-week repayment schedule, but some lenders may offer a longer or shorter repayment period.
Once you have all of this information entered into the payday loan APR calculator, you’ll be able to see the true cost of the loan.
This will help you to decide if a payday loan is the right option for you.

How is the interest rate on a payday loan calculated?

When you take out a payday loan, the interest rate is generally calculated as a percentage of the amount you borrow. For example, if you borrow $100 and the loan interest rate is 10%, you will owe $110 when the loan is due.
The interest rate on a payday loan can vary depending on the lender, but it is typically higher than the interest rate on a traditional loan.

How are interest rates and fees calculated for payday loans?

When you take out a payday loan, you typically have to pay back the full amount plus interest and fees within a few weeks. But how is that interest calculated?
The interest rate on a payday loan is usually much higher than the rate on a traditional loan from a bank. That’s because payday loans are considered to be high-risk loans.
To calculate the interest on a payday loan, you can use an online payday loan calculator. Just enter the loan amount, the interest rate, and the number of days you need to repay the loan. The calculator will do the rest.
In general, the longer you need to repay a payday loan, the more interest you’ll pay.
Some lenders charge an origination fee, which is an allowable fee charged for taking out the loan. Other lenders may charge a late fee if you don’t repay the loan on time.

Payday loan calculator formula for excel

To calculate the monthly payments on a payday loan, you can use the PMT function in Excel. The PMT function calculates the payment for a loan with constant payments and a constant interest rate.
Assuming that you have a payday loan with an annual interest rate of 30%, you can calculate your monthly payment using the following formula:
=PMT(30%/12,12,-1000)

Payday Loan Calculation Example

How much would a $200 payday loan cost?

  • Assuming you qualify for a payday loan and you’re approved for a $200 loan, the fee charged on this loan could be $30.
  • The annual percentage rate (APR) on a $200 payday loan also varies by state, but it could be as high as 780%.
  • For example, if you live in California and borrow $200, the maximum amount you could be required to pay back after one month would be $260, including the $30 fee and $200 principal. That’s an APR of 130%.
  • In Florida, the same $200 loan could cost you $229.25 after one month, including the $29.25 fee and $200 principal, for an APR of 45%.
  • The cost of a payday loan depends on the state you live in, the amount you borrow, and the length of time you take to pay back the loan. Be sure to check the fees and APR before you apply for a payday loan.

Payday Loans

Payday Loan Definition

A payday loan is a small, short-term unsecured loan, typically borrowed against a post-dated personal check or paystub to pay your everyday living expenses. The borrower agrees to pay the lender a fee for the instant loan, plus interest, by their next payday. Advantages of payday loans are the ease of access, they have fewer requirements, its is an unsecured loan and you can get approved with bad credit. they come in handy for your extra monthly expenses or an unknown budget busting expense.

The annual percentage rate (APR) on a average payday loan is very high, typically around 400%. This means that if you borrow $100 for two weeks, you will have to pay back $115 to the lender. The interest and fees charged by typical payday loan lenders can be so high that it is difficult for borrowers to repay the loan and still meet their other financial obligations.

The payday lending market and industry is regulated by state and federal consumer protection laws. However, many payday lenders operate in a way that skirts the law and charges exorbitant fees and interest rates.

If you’re considering a payday loan because you need quick cash, there are other affordable options to consider. Here are just a few:

  1. Source of Income: If you have a job, ask your employer for an advance on your current income from your next paycheck.
  2. Cash Plan: With an instant cash plan, you deposit money into an account each week. When you need cash before payday, you withdraw money from the account.
  3. Alternative Loans: There are many types of alternative loans, including loans from family and friends, credit card balances and debt, and personal loans from a bank or credit union.
  4. Payday Lending Industry: The payday lending industry is regulated by state and federal laws. Before you take out a payday loan, make sure you understand the laws in your state.
  5. Cost of Credit: Payday loans typically have very high fees. For example, a $100 payday loan may have a fee of $15. That’s an annualized interest rate of 390%!
  6. Online Lenders: There are many online lenders that offer payday loans. Be sure to shop around and compare fees before you choose an online

What is a payday loan? – Consumer Financial Protection Bureau

Fast Cash and Payday Loans

Payday Loans Neon Sign

Alternative Loan Types

Personal Loans

A personal loan is a loan that is not secured by collateral and is typically used for smaller amounts than other types of loans. Personal loans can be used for a variety of purposes, including consolidating debt, paying for a vacation, or making a major purchase. The application process for a personal loan is typically less complex than the application process for a mortgage or auto loan.

You can use the above calculator as a personal loan calculator as well.

If you are approved for a personal loan, you will be asked to sign a loan agreement. This agreement will outline the loan terms, including the interest rate, monthly loan payment repayment amount, and repayment schedule.

Once you have signed the loan agreement, the lender will disburse the loan funds to you. You will then be responsible for making monthly payments on the loan until it is paid off. Most personal loans have a repayment term of two to five years. If you are considering taking out a personal loan, it is important to compare offers from multiple lenders

Payday Loans Calculation

Debt Consolidation loan

There are many reasons to consolidate debt as part of your debt management plan. The two primary reasons are to save money and to get out of debt faster and improve your financial situation. A debt consolidation loan can save you money in two ways.

First, by consolidating your debts into one loan with a lower interest rate, you will pay less interest overall. Second, by consolidating your previous loans & debts into one loan with a lower monthly payment, you will free up money each month to put towards other bills or savings.

You may be requirements that you have a decent credit score to be eligible, since they may run a credit check to make a informed decision on your loan during their decision making process.

Conclusion

There are many disadvantages of payday loans that should be considered before taking out one of these short-term loans. Payday loans are often predatory loans, with high interest rates and fees that can trap borrowers in a cycle of debt. They are also not a secured loan, so if you default on the loan, the lender can take your assets.

Additionally, online payday loan debt can be difficult to discharge in bankruptcy. There are other, more affordable alternatives to payday loans that should be considered before taking out one of these high-cost loans.

The payday loan calculator is a great tool to use when you are in a tight spot and need cash fast. It is important to remember to only borrow what you can afford to pay back, and to make sure you have a flexible repayment plan plan to do so. Using the calculator can help you stay on track and avoid getting in over your head.

A payday loan calculator can help you determine the total cost of your loan, including the interest and fees, so you can make an informed decision about taking out a payday loan.

In this article, we explained how to use a payday loan calculator and provided some helpful tips for calculating the cost of your loan.

Whether you’re facing a financial emergency or looking to bridge the gap between paychecks, a payday loan calculator can help you make the right choice for your financial situation.

Michael Ryan
Michael Ryanhttps://michaelryanmoney.com/
Who Am I? Wondering who's behind the financial wisdom you're about to receive? I'm Michael Ryan, a retired financial planner. My journey didn't stop at retirement; it pivoted. Now, I serve as your personal financial coach, dedicated to guiding individuals and entrepreneurs through the financial maze. Why Listen to Me? Why should you heed my advice? Simple. My expertise is not just academic; it's forged from years of hands-on experience. But don't just take my word for it. I've been quoted and featured in esteemed outlets like US News & World Report, Business Insider, and Yahoo Finance. For more proof, feel free to check out my press accolades 'here'. What's in It for You? Got burning questions about money? Whether it's budgeting, investing, or retirement planning, I've got you covered. Through my 'blog', I'm on a mission to democratize financial literacy for all.
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