Payday Loan Fee Comparison Calculator
See which of two payday loan offers is cheaper overall based on fees and rollover counts.
Additional Information and Definitions
Loan Principal
The total amount you borrow under each payday loan scenario.
Fee Rate Loan 1 (%)
Approximate percentage charged by the first loan. For instance, 20 means 20% of the principal.
Rollover Count Loan 1
Number of times you might extend or roll over the first loan, incurring additional fees each time.
Fee Rate Loan 2 (%)
Approximate percentage for the second loan option. For instance, 15 means 15% of the principal.
Rollover Count Loan 2
Number of times you might extend or roll over the second loan, incurring repeated fees.
Decide Your Short-Term Loan Path
Minimize fees by comparing different fee rates and rollovers.
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Short-Term Loan Vocabulary
Understand the terms used when comparing two payday or short-term loan products.
Fee Rate:
A percentage of the principal that the lender charges each time the loan is carried. It's typically higher for payday loans.
Rollover:
Extending the loan term by paying an additional fee. This often leads to repeated cycles of debt if not carefully managed.
Principal:
The amount you borrow initially. Fees are calculated as a portion of this principal.
Payday Loan:
A very short-term borrowing option, often with high fees, aimed at covering immediate cash shortages until the next paycheck.
Fee Comparison:
By calculating total fees for each scenario, you can see which option is cheaper. It's important to note that both might be costly.
Short-Term Debt:
Loans that require quick repayment, typically within weeks or a few months, carrying higher periodic charges than traditional loans.
5 Surprising Truths About Payday Loans
Payday loans are notorious for high fees, but there's more to them than meets the eye. Here are five quick facts you might not expect.
1.They Can Spiral Quickly
A single rollover can double your fee exposure. Borrowers often find themselves stuck in a cycle, leading to exponential cost growth.
2.Short-Term, High-APR
While these loans are meant for immediate needs, their effective annual percentage rate can be in the hundreds. It's a costly convenience.
3.Some States Restrict Rollovers
In certain regions, lenders can only roll over a limited number of times. This protects consumers but might limit options if you can’t repay.
4.Compare Before You Commit
Even though payday loans are often last-resort, comparing two offers can still save you meaningful cash. A small difference in fee rates matters.
5.They Can Impact Credit If Unpaid
Defaulting on a payday loan can get reported to credit bureaus, damaging your score. Responsible use is crucial if you rely on such loans.