Payday Loans Calculator

Understand payday loan costs then apply online in moments here with zaving today.

Last updated by Zaving Editorial Team, on January 18th, 2024

Are you looking for a payday loans calculator? Figuring out payday loan costs is important. If you need some urgent cash to get you through a tight spot, you can turn to zaving to help you explore your options. Our online service makes applying for a loan quick, easy, and hassle-free. If your loan is approved, cash can land in your bank account straight away – it's as simple as that! Start the application process right here today with zaving.

What are payday loans and how do they work?

Payday loans are short-term, high-interest loans that are designed to provide borrowers with quick access to cash until their next payday. They are typically small amounts, usually less than $1,000, and are repaid in a single payment on the borrower's next payday.

To obtain a payday loan, you will typically need to provide basic information such as your name, address, date of birth, phone number, and bank account details. Your chosen lender will then verify your employment and income details to ensure you have the means to repay the loan. You may also be required to provide proof of identification to confirm your identity. If approved, you'll receive the loan amount directly or through a deposit.

Repayment of the payday loan, including the principal amount, fees, and interest, is typically due on your next payday or within a specified time frame. Failure to repay the loan on time will likely result in additional fees and interest, which can significantly increase the overall cost of the loan.

How much do payday loans cost?

The costs of payday loans are determined by a combination of factors, including the loan amount, interest rate, fees, and the repayment period.

  • Interest rate: Payday loans typically carry high interest rates, often ranging from 300% to 400% APR. This means that the borrower could end up paying as much in interest as they borrowed in principal.
  • Fees: In addition to interest, payday lenders also charge a variety of fees, such as application fees, origination fees, and late payment fees. These fees can add up quickly and significantly increase the overall cost of the loan.
  • Repayment period: Payday loans are typically designed to be repaid in a single payment on the borrower's next payday. This short repayment period can make it difficult for borrowers to afford the payments, which can lead to additional fees and interest.
 

To get an estimate of the total cost of a payday loan, you can use a payday loan calculator. A payday loan calculator will ask you to enter the loan amount, interest rate, and repayment period. It will then calculate the total cost of the loan, including interest and fees.

How do I calculate payday loan costs?

Calculating payday loans involves understanding the principal amount, interest rate, and repayment duration. To get started, determine the borrowed sum—the principal. Then, identify the interest rate charged by the lender. Typically, payday loans carry high annual percentage rates (APRs), often in the triple digits.
Next, consider the repayment period, usually a short-term ranging from a few days to a month. The total cost includes both the principal and the interest accrued over this period.

You can manually compute this by multiplying the principal by the daily interest rate and the number of days in the repayment term.
To simplify and streamline this process, you can use a payday loan calculator. A payday loan calculator automatically factors in the interest rate, term, and any additional fees to provide an estimated repayment amount. This can help you make informed decisions and manage your finances effectively.
However, it's crucial to be cautious. Be aware that payday loans often come with complex terms and high costs. Ensure you comprehend all charges, including interest rates and any hidden fees that may significantly impact the final repayment amount.

More of your frequently asked questions about payday loans

Are payday loans available in all U.S. states?

No, payday loans aren't an option across all U.S. states. As of 2023, approximately 18 states and the District of Columbia have implemented bans on payday loans, whereas the remaining 32 states and Puerto Rico have established guidelines permitting them but with different restrictions.

Can I get a payday loan with bad credit?

Getting a payday loan with bad credit is feasible. These lenders often prioritize your income and repayment ability over your credit score. Yet, having poor credit might lead to higher fees or interest rates on the loan.

What happens if I default on my payday loan?

Failing to repay a payday loan as agreed can result in added charges, negative credit reporting, and the possibility of legal proceedings by the lender. Such consequences can significantly impact your credit standing, potentially hindering future borrowing opportunities. Seeking assistance from credit counseling agencies or financial advisors if struggling to meet payment obligations can provide valuable guidance to navigate this situation effectively.

What are some alternatives to payday loans?

Exploring alternatives to payday loans might involve seeking small-dollar loans from credit unions or community banks that typically have lower interest rates. Additionally, options like negotiating payment plans with creditors, seeking advice from non-profit credit counseling agencies, or exploring peer-to-peer lending platforms can offer more manageable borrowing solutions.