Short-Term Loan APR Calculator
A small fee on a short loan can mean a very high annual rate. See what it works out to.
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Short-Term Loan APR Calculator by TheCalcTools
How the Short-Term Loan APR Calculator works
Enter how much you borrow, the total fee or interest and how many days the loan lasts.
The fee as a share of the amount is scaled up to a full year.
The result is the simple (non-compounded) annualised rate.
The formula
Worked example
Using the default values shown in the calculator:
| Amount borrowed | $500 |
|---|---|
| Total fee or interest charged | $75 |
| Loan term (days) | 14 |
- Fee ratio = 75 ÷ 500 = 15%, or $15.00 per $100.
- Scaled to a year: 15% × 365 ÷ 14 = 391.1%.
- You repay $575.00.
Result:
| Equivalent APR | 391.1% |
|---|---|
| Fee per 100 borrowed | $15.00 |
| Total to repay | $575.00 |
Frequently asked questions
Why are the APRs so high?
A $15 fee for a $100 two-week loan looks small, but if the loan were rolled over for a year the cost would be about 390% of the amount.
What are alternatives?
A credit union small loan, a payment plan with the creditor, a paycheck advance from an employer or a community assistance program may cost far less.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.
