Payday Loan Payoff Calculator: Time and Interest to Escape
See how long it takes to clear a payday loan at a fixed monthly payment, and how much of what you pay is pure interest rather than principal.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year payoff schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| $500 · 35% · $120/mo | 5 months | $41.26 | $541.26 |
| $300 · 200% · $80/mo | 7 months | $210.46 | $510.46 |
| $1,200 · 50% · $250/mo | 6 months | $167.83 | $1,367.83 |
| $800 · 100% · $300/mo | 4 months | $143.38 | $943.38 |
How This Calculator Works
Enter the balance owed, the effective APR — converted from any per-$100 fee — and the most you can afford to pay each month. The calculator charges interest at that rate, deducts your payment, and counts the months until the balance is gone. It also flags when a payment is too small to make headway against the interest.
The Formula
Debt Payoff Time
B = balance, P = fixed monthly payment, r = monthly rate (APR ÷ 12), n = months to clear
Worked Example
A $500 payday loan at a 35% effective APR cleared at $120 a month takes about 5 months and adds roughly $41 in interest. At a more typical payday APR of 391%, the same $120 monthly payment never finishes — the balance grows faster than you pay it down.
Key Insight
Payday loans are priced for rollover, not payoff. The standard 'fee per $100' lands at a three- or four-figure APR; cleaning the debt requires a payment well above the monthly interest, every month. A debt consolidation loan or a credit-union small-dollar loan almost always cuts the real cost in half or better.
Frequently Asked Questions
How is the APR on a payday loan calculated?
A typical $15 fee on a $100 two-week loan annualizes to roughly 391% APR. Multiply the fee per $100 by the number of borrowing periods in a year — the headline 'fee' hides what the loan really costs.
What if my payment cannot beat the interest?
The balance grows instead of falling and the loan never pays off. The calculator flags this. Either raise the monthly payment, or refinance to a lower-rate lender — a personal or credit-union loan is usually far cheaper.
Should I roll the loan over?
Almost never. Each rollover adds another fee on the same balance, which is how a few hundred dollars borrowed becomes thousands in fees over a year. Refinance instead, even at a higher-than-prime personal-loan rate.
What is a better alternative?
Credit-union small-dollar loans, a personal-loan consolidation, or a workplace pay-advance program. Even high-APR credit cards usually cost much less than payday borrowing once the math is done.
Are payday loan rates capped?
Caps vary by state and country. Some jurisdictions cap APR at 36% on these products; others have no effective cap at all. Always check the local consumer-finance regulator before borrowing.
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Methodology & Review
The payoff is simulated month by month: interest is charged on the balance at the quoted APR, the fixed payment is deducted, and the months are counted until the balance clears. Rollover fees, late charges, and extension penalties are not modeled — the calculator's figure is usually optimistic versus the real cost.
Written by Ugo Candido · Last updated May 17, 2026.