A flat fee spread over days
A payday loan charges a fee for the whole term, not for each day. Spreading it over the term shows the daily cost. A $300 loan with a $15 fee per $100 for 14 days has a fee of $45.00, which is $3.21 a day, or 1.071% of the loan a day. You repay $345.00 and the APR is 391.07%.
The fee is the same if you repay on the first or the last day of the term unless your agreement or state law provides a refund, so the daily figure describes the average cost, not a bill that stops when you pay.
Daily interest from a yearly rate
If your lender quotes a yearly rate, daily interest is the balance multiplied by the APR divided by 365. On $1,000 at 36% the interest is $0.99 a day and $29.59 over 30 days, so you repay $1,029.59. This is simple interest with a 365-day year. Check your agreement for the day-count basis it uses.
Checking a quote against the limits
The Military Lending Act limits the annual percentage rate to 36 percent for covered service members and their dependents (10 U.S.C. 987(b)), and the calculator shows a note when the APR is above that. For everyone else, state law sets the fee limit.
For rollovers and other fees, use the US payday loan calculator.
In the UK a daily rate is capped; see the UK daily interest on payday loan calculator.
Inputs for the US daily interest calculator
The lender quotes
Choose a flat fee per $100 or a yearly rate (APR), whichever your lender gave you.
Amount borrowed
The amount the fee or interest is charged on.
Fee for every 100 borrowed
The flat fee per $100 for the whole term.
Yearly interest rate (APR)
The yearly rate in your loan agreement.
Days borrowed
The loan term for a flat fee, or the days interest builds for a yearly rate.
CALCULATOR QUESTIONS
US daily interest on payday loan calculator questions
How do you calculate daily interest on a payday loan?
For a flat fee, divide the fee by the days in the term. $45 over 14 days is $3.21 a day. For a yearly rate, multiply the balance by the APR and divide by 365.
What is the daily rate of a $15 per $100 payday loan?
Over 14 days it is 1.071% of the loan a day, an APR of 391.07%.
Does paying early reduce a payday loan fee?
Usually not, because the fee is charged for the term. Some state laws or contracts provide a refund, so check yours.
Is there a US cap on payday loan interest?
There is no federal cap for ordinary borrowers. States set fee limits, and the Military Lending Act caps the APR at 36 percent for covered service members and dependents.