APR Calculator for PayDay Loans

Most banks and credit unions offer payday loans. So do many check cashing stores and online sites. You can find payday loan calculators online, but as far as I can find, they don’t give the option of telling you if the fee or interest charged is upfront or at the end of the loan.

For example, the image of the Excel worksheet below shows a loan fee of $7.50 for each $100 borrowed for 30 days. The $7.50 fee however, is taken upfront, so the APR is 98.65%.

payday 7.50 upfront

If the $7.50 fee is taken at the end of the 30 day loan, the APR is 91.25%.

payday 7.50 at end

If you are making payday loans you will need to show an APR. By looking in each cell of the calculator, you can see how easy it is to calculate an APR for short-term (less than one year) loans.

Look for “APR_Payday


Don Pistulka
Don Pistulka

Retired Credit Union CFO - Finance
Background: over 40 years in investments, asset/Liability management, banking, securities trader.
Worked for: California Credit Union, WesCorp, CalFed S&L, Crocker Bank, Carroll McEntee, Federal Home Loan Bank Board (D.C.), Western Asset Management, Security Pacific National Bank.


  1. A payday mortgage (additionally referred to as a payday strengthen, salary loan, payroll loan, small-greenback loan, quick-time period, or cash improve loan) is a small, short-term unsecured mortgage, “regardless of whether repayment of loans is linked to a borrower’s payday.The loans are also from time to time called “cash advances,” though that term also can discuss with coins furnished against a prearranged line of credit score together with a credit card. Payday develops loans depend upon the purchaser having preceding payroll and employment records. Legislation concerning payday loans varies broadly among one of a kind international locations and in federal systems, between specific states or provinces.

    Visit for more payday loans

  2. You have some great sheets available. Thank you. Have you done any work on business models for payday loans/short term credit contract books? Looking at the returns of a pool of loans. Modelling out bad debts, slow payments, and frequency of small amount credit contracts (say 60 days, 20% upfront fee, and 2% monthly interest rate). Cheers

    1. Jonathan,
      My experience with payday loans was to calculate the APR (per the U.S. Truth in Lending Act). Your description says “monthly interest rate”. Do your payday loans make monthly payments or is the interest rate just compound monthly? The payday loans we made at the credit union in the U.S. made only one payment, at the maturity of the loan.

      I have 140 spreadsheets on the blog site, the majority which are loan oriented. You should be able find a title that could be adjusted to fit payday loans. The titles and spreadsheets are listed on http://pistulka.com/
      If you would like to send me a sample loan portfolio, with a description of what you need to do with the loans, I will take a look and see if I can help.

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