Payday Loan Calculator
Are you struggling under the burden of a bad credit rating? Are you finding it increasingly difficult to secure a personal loan as a result? Are you looking to borrow a small amount of money to cover this month’s expenses? If so, a payday loan could be your best option. Payday loans are designed largely for short-term borrowing situations: those who are looking to obtain a little cash and quickly, with the intention of paying it back come payday. This payday loan calculator shows what you could expect to pay in terms of APR, or Annual Percentage Rate, on a loan. Before using the calculator, it is wise to research the various options and lenders that offer payday loans. From this, you will be able to garner the typical fee charged by these lenders per $100.
How to use it
The payday loan calculator is very easy to use. As mentioned previously, it does require the user to know not only how much they wish to pay and when they will be able to pay it back, but also the fee charged by the lender. Most lenders will offer a maximum depending on the duration of the loan, so research this first. Simply enter the amount of the loan into the first box, titled “Payday Loan Amount”, and under it the length of the loan. With a loan such as this, the duration will be the time until your next payday – when you plan to pay the loan back. Finally, you enter the fee charged by the lender into the final box marked “Payday Loan Fee”. Clicking on calculator will give you the APR percentage.
So as to better understand the payday loan calculator, we can take some typical figures and feed them into the calculator as an example. A typical payday loan amount will be relatively small when compared to traditional loans: say, $1,000. We enter this figure into the “Payday Loan Amount” box. For simplicity’s sake, we can imagine that the borrower is applying for this loan at the beginning of the month, therefore will be able to pay the loan back in 30 days. This is the “Payday Loan Term”. Then we must add a fee, which lenders usually apply per $100. If the fee is $10 per $100, then the total fees here will be $100. Clicking calculate shows us that the APR on such a loan will be around 122%.