About the Payday Loan Cost Calculator
What is the Payday Loan Cost Calculator?
Short-term “instant” loans from apps often charge interest per day and a processing fee deducted upfront. A rate like 1% a day sounds small but is 365% a year before fees.
Enter the amount, daily interest, days and processing fee. This payday loan calculator shows the interest, fee, total cost, the amount you actually receive and the annualised APR.
How to use the Payday Loan Cost Calculator
- Amount Borrowed (₹) (sample: 20,000)
- Interest per Day (%) (sample: 1)
- Days Until Repayment (sample: 30)
- Processing Fee (% of amount, GST added) (sample: 3)
- Press Calculate True Cost (results also refresh as you type). The result card shows the Annual Percentage Rate (APR), along with Interest, Processing fee incl. GST, Total cost of borrowing and Total to repay.
Formula used
APR = Total cost ÷ Amount × 365 ÷ Days × 100
- Total cost = interest (amount × daily rate × days) + processing fee incl. GST
Under RBI digital lending rules, lenders must show the APR in a Key Fact Statement and offer a cooling-off period.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Amount Borrowed (₹) | 20,000 |
| Interest per Day (%) | 1 |
| Days Until Repayment | 30 |
| Processing Fee (% of amount, GST added) | 3 |
| Result | Value |
|---|---|
| Annual Percentage Rate (APR) | 408.1% |
| Interest | ₹6,000 |
| Processing fee incl. GST | ₹708 |
| Total cost of borrowing | ₹6,708 |
| Total to repay | ₹26,000 |
| Amount actually received (fee deducted upfront) | ₹19,292 |
Tips for using the Payday Loan Cost Calculator
- Borrow only from RBI-regulated banks and NBFCs or their listed lending apps.
- Rolling over a payday loan compounds the cost very quickly.
- A credit card, salary advance or small personal loan is almost always cheaper.