APR puts every loan on the same yardstick: the cost of borrowing per year. For a short-term loan with a flat fee, or a rate quoted per day, week or month, converting to APR takes one or two multiplications. This basic APR calculator does both conversions and shows the numbers that make the result easier to grasp — the cost per $100, the daily cost and what the borrowing would cost if repeated all year.
How to use the basic APR calculator
- Choose what you know:
- Fee and loan term — for payday loans, pawn loans, cash advances or any single-payment loan with a fixed charge.
- Rate per period — for a rate quoted per day, week, two weeks, month or quarter.
- For a fee, enter the amount borrowed, the total fees and interest and the term in days.
- For a periodic rate, enter the rate and how many periods are in a year.
- Read the APR and the supporting figures, and compare with the reference table.
Basic APR formulas
For a fee F on an amount P borrowed for d days:
For a periodic rate i with m periods a year:
The APR is a nominal, non-compounded rate — the convention under the federal Truth in Lending Act. The effective annual rate shows what happens if the charges compound.
Worked examples
Short-term loan: you borrow $400 for 14 days and repay $460. The fee is $60, or $15 per $100.
Rate for the term: 60 ÷ 400 = 0.15. Daily rate: 0.15 ÷ 14 = 0.0107143. APR: 0.0107143 × 365 = 391.07%.
Monthly rate: a lender charges 1.5% per month. APR: 1.5% × 12 = 18%. Effective annual rate: 1.01512 − 1 = 19.56%.
Fees per $100 and their APRs
| Fee per $100 | APR over 14 days | APR over 30 days |
|---|---|---|
| $5 | 130.4% | 60.8% |
| $10 | 260.7% | 121.7% |
| $15 | 391.1% | 182.5% |
| $20 | 521.4% | 243.3% |
| $30 | 782.1% | 365.0% |
The same fee becomes a much higher APR when the term is shorter, because you would pay it more times in a year.
Reading APR on short-term credit
The rollover trap
Many short-term borrowers cannot repay in two weeks and pay another fee to extend. Each renewal adds the full fee again without reducing the debt. Renewing the $400 loan above every two weeks for a year would cost about $1,564 in fees — the APR in dollars.
APR vs. effective rate
If each fee were added to the balance rather than paid, the cost would compound, and the effective annual rate on the example would run into the thousands of percent. Disclosures use the simpler APR, so the effective figure is shown here only for perspective.
Cheaper alternatives
A credit union payday-alternative loan, a small personal loan, a payment plan with the biller or even a credit card cash advance usually costs far less. The Consumer Financial Protection Bureau publishes guidance on comparing these options.
For installment loans with origination fees or points, use the APR calculator. To move between periodic, nominal and effective rates, try the periodic interest rate calculator.
Estimates only. Lenders' disclosed APRs may account for exact day counts and additional charges, and state laws set different fee limits.
Frequently asked questions
How do I calculate APR from a fee?
Divide the fee by the amount borrowed to get the rate for the term, divide by the number of days in the term, then multiply by 365. A $60 fee on a $400, 14-day loan is 0.15 ÷ 14 × 365 = 391.07% APR.
How do I convert a monthly rate to APR?
Multiply the periodic rate by the number of periods in a year. A 1.5% monthly rate is 1.5 × 12 = 18% APR. This is the nominal APR used in US disclosures; with compounding, the effective annual rate is higher, 19.56% in this case.
Why is a payday loan APR so high when the fee seems small?
Because the fee is charged for a very short period. $15 per $100 for two weeks does not sound like much, but borrowing that way for a full year — renewing every two weeks — would cost about $391 in fees per $100, which is what the APR expresses.
Is the basic APR the same as the APR on my loan disclosure?
For a single-payment loan with one fee, it is essentially the same calculation. For installment loans, where the balance falls with each payment, lenders solve for the rate numerically, so use the full APR calculator instead.