The Payday Loan Calculator helps users estimate the daily interest rate, total interest, total repayment amount, due date, and effective APR for a short-term loan based on input variables such as loan amount, term, and APR.
Payday Loan Calculator
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Step-by-Step Guide to Using the Payday Loan Calculator
Introduction
This guide will walk you through the process of using the Payday Loan Calculator to understand the cost of a short-term loan. By providing specific details about your loan, you’ll receive important calculations such as the total interest payable, the total repayment amount, and the due date.
Step 1: Input Loan Amount
Begin by entering the amount you wish to borrow in the “Loan Amount ($)” field. The minimum amount you can enter is $100, and the maximum is $5000. Ensure the amount is a multiple of $100.
Step 2: Select Loan Term
Select the duration of the loan from the “Loan Term” dropdown. You can choose between three options: 7 days, 14 days, or 30 days. This selection indicates how long you plan to take to repay the loan.
Step 3: Input Annual Percentage Rate (APR)
In the “Annual Percentage Rate (APR %)” field, enter the APR associated with the loan. This value can range from 1% to 1000% and should be entered in increments of 0.1% to ensure precision in calculations.
Step 4: Choose Loan Start Date
Choose the date when the loan will start using the “Loan Start Date” field. Please select a date between January 1, 2024, and December 31, 2025.
Results
- Daily Interest Rate: The calculator will automatically compute the daily interest rate based on the APR you provided and display it as a percentage.
- Total Interest: This value shows the total interest you will pay over the loan term, displayed in U.S. dollars. It is computed based on the loan amount, APR, and loan term.
- Total Amount to Repay: The total amount that needs to be repaid, including both the principal and interest, will be shown in U.S. dollars.
- Due Date: The calculated due date, which is determined by adding the loan term to the start date, will be displayed in the format YYYY-MM-DD.
- Effective APR: This percentage reflects the true annual rate of interest you pay considering the loan term, calculated based on the total interest and the original loan amount.
Conclusion
By following these steps, you can effectively use the Payday Loan Calculator to gain a clear understanding of the financial implications of your loan choices. Review the results carefully to make informed borrowing decisions.