Payday Loan Destruction Simulator
Payday Loan Cost Calculator — Rollover Interest Trap
What this calculator does
This calculator shows the total cost of a payday loan after each rollover period. It helps you see why the APR is often in the triple digits.
The math, with a worked example
Fee per rollover = loan amount × fee per $100 ÷ 100. Total cost = loan amount + (fee × number of rollover periods). APR = total fees ÷ loan amount × (52 ÷ rollover periods in weeks) × 100. A $500 loan with a $15 fee per $100, rolled over 12 times, costs about $900 in fees alone and the effective APR can exceed 390%.
Why this matters
A payday loan's price tag is a fee, not a rate, and the fee repeats every rollover: $15 per $100 looks like 15% but works out near 390% APR, and 12 rollovers on a $500 loan cost $900 in fees without touching the principal. The math is the warning.
Methodology and transparency
Fee per rollover = amount × fee per $100 ÷ 100; total cost = principal + fee × rollovers; APR = total fees ÷ amount × (52 ÷ rollover weeks) × 100, the same annualization lenders must disclose under Truth in Lending. The assumption most likely to be wrong is optimistic: the rollover count. Most borrowers plan on 1 and average many more, so run it with double your honest guess. Everything runs in your browser; no data is sent or stored.
Last reviewed: 2026-08-08
Common questions
What is a rollover?
A rollover happens when you extend the loan instead of paying it off, usually paying another fee every two weeks.
Why is the APR so high?
Because the fee is charged repeatedly for a small, short-term loan. The annualized rate compounds quickly.
Are payday loans ever worth it?
Almost never. The cost usually exceeds alternatives like payment plans, credit counseling, or even a credit card cash advance. Compare it against cashing out retirement savings too — that one looks cheaper than it is.