**How Do You Calculate the APR of a Payday Loan?**

There are lots of methods for calculating the annual percentage rate of a payday loan.

Here’s one way:

Divide the total loan by 100.

Multiply the result by the fixed fee for every $100.

Now you have the total finance charge. Calculate the APR using the method above.

Payday loan APR example:

Say you borrow $650 and you know there is a fixed fee of $30 for every $100 borrowed.

Calculate the total finance charge:

Divide $650 by 100 and multiply by $30.

The total finance charge for this example is $195.

Calculate this loan’s APR using the method above. The result is 782.14%. ($195 / $650 x 365 days /14 days x 100).