See the real cost of a payday loan before you take one
In the US, a payday loan looks like a small, flat fee for two weeks of cash. Annualized, that flat fee is often the equivalent of 300%-400% interest or more, and missing the first payday can mean a second fee on top of the first. This site lays out the real math, the rollover trap, and the alternatives worth trying first.
What's happening right now?
What a payday loan actually costs, before you decide
A payday loan can genuinely bridge a short-term gap, but it carries specific, real costs that are easy to underestimate from the flat fee alone.
- The real annualized cost is far higher than the flat fee suggests: a common $15-per-$100, two-week fee works out to roughly 391% APR, and some states allow structures that push this above 400%.
- Rollover fees compound without reducing what you owe: each extension adds another full fee on top of an untouched principal, which is how the total cost can exceed the original loan amount within a few months.
- Some lenders use aggressive collection tactics, including excessive contact, threats beyond what's legally accurate, or contacting an employer or family member without consent — all of which are worth reporting to the CFPB or your state regulator.
- Borrowing a second payday loan to cover the first is functionally the same as a rollover and puts you at real risk of a debt spiral, with two sets of fees compounding instead of one.
Six ways into the same decision
Pick whichever matches what you're actually trying to figure out.
Understand the rollover trap
How one missed payday can turn into months of fees.
See how it compounds →Compare the fast alternatives
Credit union loans, wage-access apps and more, before you borrow.
See the alternatives →Ask your biller for more time first
A step people forget before they ever consider borrowing.
See how to ask →Check what your employer offers
Early wage access and hardship programs many workers never hear about.
See employer options →See the real numbers before you borrow
Three calculators covering the real annualized cost, a side-by-side fee comparison, and an affordability check, all showing total cost, not just the flat fee.
Real cost & APR of a payday loan
See what a payday loan's flat fee actually annualizes to, and what a rollover would add on top, before you borrow.
Assumptions this uses
- The fee entered repeats identically for each rollover, matching how most payday loans are structured.
- The APR is calculated by annualizing the fee-to-amount ratio over the number of periods in a year.
- The principal amount owed does not decrease with a rollover, only the fees paid increase.
- Figures are estimates based on the numbers you provide, not a specific lender's exact terms.
Limitations: This does not account for late fees, NSF fees from your own bank, extended payment plans some states require, or fee structures that differ from a flat per-period charge.
Runs entirely in your browser.
Write down the total cost, not just the fee
Before taking any payday loan, write down the fee, the annualized rate, and what a single rollover would add. It takes about two minutes with the calculator on this site and means you'll recognize whether the cost is manageable, or a warning sign, before you sign anything.
Ask about your specific situation
A plain-English assistant that explains the real cost of payday borrowing and the alternatives. It doesn't replace a counselor.
Ask about your situation
If you'd like a second read on your situation, you're welcome to reach out. This isn't a promise of a specific outcome, just an invitation to ask.
There's no wrong way to describe what's going on, and you don't need exact numbers to reach out.
Partner link — we may be paid a fee at no cost to you. How we make money.
Talk to a free nonprofit counselor first
An NFCC-affiliated counselor can look at your whole situation in one free call, often the same week.
Find free credit counseling →The Payday Loan Decision Worksheet
List the loan terms you're being offered, compare the real annualized cost against a PAL, a wage-access app and a biller extension, and walk into any decision already prepared.
Where to look next, if a paid option fits
These are referral partners, shown after the free alternatives and the real risks, not instead of them. None of them promises a specific result.
How we make money: some links here are partner or affiliate links and we may be paid a fee at no cost to you. It never changes what we write or how options are ordered — see our disclosure and methodology.
Financial Wellness App Referral
For budgeting and building a small cash buffer so a short-term gap is less likely to turn into a borrowing decision at all.
See wellness app options →Payday Loan FAQ — US
No hedging, no upsell. Where the honest answer is 'it depends,' we say what it depends on.
What is a payday loan, exactly?
A payday loan is a small, short-term loan, typically a few hundred dollars, due in full (plus a flat fee) on your next payday, usually within two to four weeks. It's typically unsecured and doesn't require a credit check, which is part of why the fee is so high relative to the amount borrowed.
What does a payday loan actually cost, annualized?
A common fee is around $15 per $100 borrowed for a two-week term. Annualized, that works out to roughly 391% APR, since the same fee would repeat about 26 times over a year. Some states allow higher fees, pushing the effective APR well above 400%.
What happens if I can't repay on the due date?
Most payday lenders offer to 'roll over' the loan: you pay a new fee to extend the due date, while the original amount owed stays the same. Each rollover adds another fee on top of the ones already paid, which is how the total cost can quickly exceed the amount originally borrowed.
Are payday loans legal everywhere in the US?
No. Some states cap the APR on small loans low enough that traditional payday lending isn't profitable there, and a handful effectively ban it outright. Other states allow it with few restrictions. Check your specific state's rules before assuming what applies where you live.
What's a credit union PAL?
A Payday Alternative Loan (PAL) is a small-dollar loan offered by federal credit unions, capped by federal regulation at a maximum 28% APR with modest application fees, far below typical payday loan costs. You generally need to be a credit union member, sometimes for a short qualifying period, first.
Are paycheck advance apps free?
Not always. Many earned-wage-access apps advertise no mandatory fee, but charge optional 'tips' or expedite fees that function similarly to interest when annualized, especially on small amounts borrowed for a few days. Read the fee structure closely before assuming it's free.