1. What is the Payday Loan Calculator?

The Payday Loan Calculator 2025 helps you estimate the total amount you'll need to repay for a short-term loan, including principal and interest, based on the loan amount, annual interest rate, and loan duration in days.

2. How Does the Calculator Work?

The calculator uses the payday loan formula:

Where:

• \( PV \) — Principal amount (USD)
• \( r \) — Annual interest rate (%)
• \( Days \) — Loan duration in days

Explanation: The formula calculates simple interest on the principal amount for the specified number of days, then adds it to the principal to determine the total repayment amount.

3. Importance of Loan Calculation

Details: Understanding the total repayment amount helps borrowers assess the true cost of payday loans and make informed financial decisions. Payday loans often have high interest rates that can lead to significant repayment amounts.

4. Using the Calculator

Tips: Enter the loan amount in USD, annual interest rate as a percentage, and loan duration in days. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why use this calculator instead of lender estimates?
A: This provides an independent calculation to compare with lender offers and verify their calculations.

Q2: What are typical payday loan interest rates?
A: Rates vary but often range from 200% to 400% APR or higher. Always check the exact rate before borrowing.

Q3: Does this calculator account for fees?
A: No, it only calculates interest. Many payday loans also have additional fees that would increase the total cost.

Q4: Are there alternatives to payday loans?
A: Yes, consider personal loans, credit union loans, or payment plans which often have lower interest rates.

Q5: What happens if I can't repay on time?
A: Late payments typically incur additional fees and interest, potentially creating a cycle of debt. Always plan repayment carefully.