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APR Disclosure
Last updated: June 12, 2026
loan-payday.com is a loan-matching service, not a lender. We do not make loans, set rates, or determine the cost of any loan. This disclosure explains how the Annual Percentage Rate (APR) works on the short-term loans our lending partners may offer, so you can understand the true cost before you accept any offer.
What is APR?
The Annual Percentage Rate is the cost of borrowing expressed as a yearly percentage. It is designed to let you compare the cost of credit across products with different terms. APR includes the interest and certain fees a lender charges, annualized over a full year.
Payday and other short-term loans are usually repaid in two to four weeks rather than over a year. Because APR annualizes a fee that is charged over a very short period, short-term loans often carry APRs that look extremely high compared with credit cards or installment loans — even when the dollar fee is relatively small. A flat fee of $15 on a $100, two-week loan is only $15 in dollars, but expressed as APR it is nearly 400%.
How APR works on a short-term loan
Lenders typically charge a flat fee per $100 borrowed rather than a stated interest rate. To convert that fee into an APR, the fee is divided by the loan amount, then scaled up to a full year based on the loan’s term. The general formula is:
APR = (Fee ÷ Loan Amount) × (365 ÷ Loan Term in days) × 100
The shorter the term and the higher the per-$100 fee, the higher the APR. This is why the same dollar fee can produce very different APRs depending on how long you have to repay.
Worked example
Suppose you borrow $500 for a 14-day term, and the lender charges a fee of $15 per $100 borrowed:
| Item | Amount |
|---|---|
| Loan amount (principal) | $500.00 |
| Fee ($15 per $100) | $75.00 |
| Total you repay | $575.00 |
| Loan term | 14 days |
| APR ($75 ÷ $500 × 365 ÷ 14) | 391% |
The same $500 loan can produce very different APRs depending on the fee and term:
| Fee per $100 | Term | Total fee | You repay | APR* |
|---|---|---|---|---|
| $10 | 14 days | $50 | $550 | 261% |
| $15 | 14 days | $75 | $575 | 391% |
| $20 | 14 days | $100 | $600 | 521% |
| $25 | 10 days | $125 | $625 | 913% |
| $30 | 8 days | $150 | $650 | 1369% |
Late, NSF, and rollover fees increase your cost
The APR a lender quotes assumes you repay on the original due date. If you do not, additional charges can sharply increase the total cost of the loan:
- Late-payment fees. If a payment is missed or late, a lender may charge a late fee, where permitted by state law.
- Non-sufficient funds (NSF) / returned-payment fees. If a scheduled debit is returned because your account lacks funds, the lender may charge an NSF fee, and your bank may charge an overdraft or returned-item fee as well. These can stack quickly.
- Rollover / renewal charges. If you extend or “roll over” a loan rather than repaying it, you typically pay another full fee while the principal remains outstanding. Repeated rollovers are the most expensive way to use a short-term loan and can trap borrowers in a cycle of debt. Rollovers are restricted or prohibited in many states.
Short-term loans are not a long-term solution
Payday and other short-term loans are designed to cover a temporary cash shortfall until your next paycheck. They are an expensive form of credit and are not intended to be used repeatedly or to address ongoing budget shortfalls. Before borrowing, consider lower-cost alternatives such as a payment plan with your creditor, a paycheck advance from your employer, assistance from a local nonprofit, or a credit-union small-dollar loan. We discuss these options on our Responsible Lending page and across our blog.
State availability and limits
Short-term lending is regulated at the state level. Some states cap the loan amount, the term, the fees, or the APR; others prohibit payday lending entirely. This service is not available in all states, and the states served may change without notice. Whether you can obtain a loan, and on what terms, depends on the laws of your state and the lenders licensed to operate there. For state-by-state caps and availability, see Loans by State and Rates & Fees.
Your loan agreement controls
The figures on this page are general examples to help you understand how APR works. The actual APR, fees, payment schedule, and terms of any loan are set by the lender and disclosed in the loan agreement you receive before signing, as required by the federal Truth in Lending Act (TILA) and applicable state law. Always read your loan agreement carefully and contact the lender with any questions before accepting.