How to Calculate the Interest Rate on $100, $200 Payday Loans

Everyone is subject to the vagaries of life, and can overnight find themselves in a complicated financial situation that leads to an urgent need for money: an unavoidable material repair, for example on a car; medical care ; a big unexpected bill; garage fees to use his vehicle. Usually a quick 100 dollar loan or 200$  loan can save the day. Do not feel sorry for yourself if you need money quickly to cover a spending because this is what happens to most of us. You get the money fast, handle your business and go on with your life. The main rule is to return the money on the agreed-upon date. Moreover, there is no need in your physical appearance in the office which makes everything much easier.

Why is a fast loan the solution?

Do you have bad credit and no one wants to lend you money quickly? With simple online application to get an express personal loan, you can be approved in less than an hour. All you need is to have a phone number and an e-mail, be 18+ years old and to have a steady source of income. After you fill the form, it is very important to check it for any mistakes before you submit.

Any time you think “I need 200 dollar now online”, one important rule is to compare loan contract offers. Via online comparators and simulation tools, an individual can compare loan contract offers easily, quickly and efficiently. The elements to compare for loan:

– The APR of the credit, or annual percentage rate of charge. This rate includes all consumer credit charges, including insurance. It therefore makes it possible to measure the amount of the loan in dollars. Unsurprisingly, the lower it is, the more competitive the offer;

– The nature of the credit rate (fixed rate or variable rate);

  • The duration of the loan
  • The possibility of benefiting from deferred reimbursement. You can then choose the most advantageous option for your consumer credit, and thus save even more! Beware, however, of the formula “express loan without charge”: it is not uncommon that in the end, costs are added to the consumer credit. Track down all the fine print to make sure it really is a free express loan.

$100, $200 Payday Loans Calculator

The interest formula is used to calculate the depreciation of loans and interest on time deposits, mutual funds, etc. Interest rates are directly proportional to the risk as there is a risk in lending with the borrower. This is also called compensation for lost opportunities. The interest rate on a loan is usually noted annually as the annual percentage rate. The annual percentage rate (APR) represents the actual interest you pay on loan yearly.

You can calculate the APR of a payday loan using the formula:

APR = ((finance charge / loan amount) * 365) / term) * 100

APR = ((15/100) * 365)/14) * 100

APR = 391.07%

That means, if you borrowed $100 with a finance charge (or interest) of $15 for 14 days, if you fail to pay back the loan in the timeframe, extending into a year, you will owe over $391, excluding the monthly fees on the loan.

Now, let’s go through some examples to understand how much our loan will cost us (loan term – 30 days). 

 100$ loan200$ loan
297% APR124.41$248.82$
400% APR132.88$265.75$
670% APR155.07$310.14$

Here we can see, that with 297% APR your total loan cost will be 124.41$ for a 100$ loan and 248.82$ for a 200$; with 400% APR your total loan cost will be 132.88$ for a 100$ loan and 265.75$ for a 200$ loan; with 670% APR your total loan cost will be 155.07$ for a 100$ loan and 310.14$ for a 200$ loan. Usually the average APR is 400%, but you can always take your time and find the best deal.

Thus, here are some points you need to remember:

– Without proof of use, the personal loan is an easy loan ideal for those looking for a quick loan.

– This form of consumer credit is suitable for all situations: urgent need, but also personal project of more or less long date (excluding real estate).

– Comparing and calculating interest rates allows you to benefit from the best loan conditions, and therefore to make maximum savings.

Adrianna Tori

Every day we create distinctive, world-class content which inform, educate and entertain millions of people across the globe.

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