# Payday Loan Interest Rate Calculator

If you are taking out a payday loan, it’s essential to keep track of your payments. You want to be sure you’re paying the right amount and not being charged more than you can afford. Calculating how much interest you owe on your payday loan will help you stay on top of the payment process. So let’s look at how to do it using an online payday loan calculator!

## What is a Payday Loan Calculator?

A payday loan calculator is a tool designed to help you determine how much you will pay back on a given installment. Every borrower should use a calculator because they are a great way to see how small changes in your finances can affect you.

## How to Use a Loan Calculator?

In a typical payday loan interest rate calculator, enter details such as an *amount borrowed*, *annual percentage rate*, and* term length* in the specific boxes for them. The calculator will then provide you with an annual percentage rate of your monthly payments. You can also use the calculator to get the interest fee. If you want to do this, just enter the numbers for loan amount, APR%, and loan term in days in the online interest fee calculator. The calculator will then automatically give you the figure for the true interest fee on a payday loan.

## How do Lenders Usually Calculate ARP?

APR = [Periodic Interest Rate * 365 Days] * 100

Periodic Interest Rate = [(Interest Expense + Total Fees) / Loan Principal] / Loan Term Number of Days

Let’s imagine you take out a $1,500 loan with a 90-day repayment period. Perhaps you’re paying $100 in interest on this loan, plus $30 in fees from your lender. This is how to calculate your APR for the loan.

Add the total interest paid during the loan’s life to any other fees: $100 +s $30 = $130.

Divide the loan amount: $130 /$1,500 = 0.087

Divide 0.087 by the number of days in the loan term: 0.087 / 90 = 0.00096667

To calculate the annual rate, multiply by 365: 0.00096667 ✕ 365 = 0.3528

To convert the annual rate to a percentage, multiply by 100:

To convert the annual rate to a percentage, multiply by 100: 0.3528 ✕ 100% = 35.28%.

The math may appear complicated, but the good news is that you don’t have to do it unless you want to. It shouldn’t be difficult to compare APRs, thanks to the United States federal government’s Truth in Lending Act of 1968. According to the Act, **lenders must disclose the APR to customers**. However, you might still need to know it to compare loans between lenders. In such a case, you would need an online payday APR calculator.

## Possible Fees for a Payday Loan (Interest, Roll-Over Fee, Non-Sufficient Funds, Late Fee) and Real ARP

When taking out a payday loan, you may be charged multiple fees. The basic fee is for a principal amount and an interest rate. Other fees include the roll-over fee, non-sufficient funds, and late fees. A roll-over fee is when borrowers do not pay back their original amount when they are due, causing them to have another month’s payment due. A non-sufficient funds (NSF) fee occurs when there is not enough money in a borrower’s account to pay off their debt; it is also known as an overdraft fee in some cases. Meanwhile, a late fee is charged if payments are not made on time.

These fees can vary from lender to lender and state to state.