Single-payment payday loans and installment loans
A traditional payday loan is repaid in one payment on the due date and charges a flat fee for that term. The CFPB says some state laws allow a lender to roll the loan over so that you pay only the fee. Paying such a loan early does not by itself reduce the fee unless your state law or contract provides a refund, which varies by state, so check your agreement. For the cost of a flat-fee loan and its rollovers, use the payday loan calculator.
Many lenders also offer installment loans at high rates. These charge interest each month on the balance, so extra payments do reduce the interest. That is the case this page models, with interest charged monthly at one twelfth of the APR.
Worked example: $3,500 at 96% APR
A $3,500 loan at 96% APR over 12 months has a monthly payment of $464.43. Paying only that, you pay $2,073.19 in interest and $5,573.19 in total. Adding $100 a month clears the loan in 9 months instead of 12, saving 3 months. Interest falls to $1,528.02, a saving of $545.17.
When the extra payment clears the loan quickly
The last payment is only what is left. A $2,000 loan at 48% APR over 24 months with $1,500 extra each month is cleared in 2 months, with $97.95 of interest.
The payment never falls below the standard monthly payment, so the schedule always ends. Interest is rounded only for display, so a lender's statement may differ by a few cents.
The 36 percent limit and cheaper options
The Military Lending Act limits the rate to 36 percent for covered service members and dependents (10 U.S.C. 987(b)), and the calculator shows a note when your APR is above it. Compare the APR and total repaid with other lenders, such as a credit union.
For a flat-fee loan and rollovers, use the US payday loan calculator.
UK payday loans work differently; see the UK payday loan payoff calculator.
Inputs for the US payday loan payoff calculator
Amount borrowed
The loan amount repaid in monthly installments.
Yearly interest rate (APR)
The yearly rate in your agreement. Interest is charged monthly at one twelfth of it.
Loan term
The number of monthly payments in your agreement, from 1 to 60.
Extra each month
Money you add to every monthly payment. Enter 0 to see the standard schedule.
CALCULATOR QUESTIONS
US payday loan payoff calculator questions
Will paying a payday loan early save me money?
On a single-payment loan with a flat fee, usually not, unless your state law or contract refunds part of the fee. On an installment loan that charges interest on the balance, extra payments cut the interest.
How much does $100 extra a month save?
On $3,500 at 96% APR over 12 months, $100 extra a month saves $545.17 in interest and 3 months.
How is the monthly payment worked out?
With the standard amortization formula at one twelfth of the APR a month. The $3,500 example comes to $464.43 a month.
What if the lender applies extra payments differently?
Some lenders apply extra money to the next payment instead of the balance. Ask your lender to apply it to principal, and check that the loan has no prepayment penalty.