Payday loan calculator

To work out the amount you have to pay back we have used an interest rate of 0.8% per day. This is the most a payday lender can charge.

So, if you borrowed £300 for 30 days your loan would cost you £2.40 every day. That is £72.00 in total.

Sometimes, payday lenders may agree to allow you to 'rollover' the loan amount for another loan period. They will do this if you pay any interest due so far. This is also known as an 'extension' or 'deferral'.

There is often a fee or cost to do this. In next loan period you may be charged interest on the original loan amount as well as a rollover fee.

A payday lender can only roll over a loan twice.

Interest is charged as a percentage of the money you borrow. This is normally shown as an annual amount. Such as 292% p.a. (per annum - which means each year).

This is the interest you actually pay. Don't mix it up with the APR - the annual percentage rate. You may have seen an APR but it is a 'representative' amount, meaning how much you could be charged if you borrow for a year.

If you do not make the payment due by the agreed time and date most payday lenders will charge you a late or missed payment fee.

Some lenders will then charge interest on the original loan amount plus the late payment fee. But this is capped at 0.8% per day for each.

Banks will charge a fee to cover payments where there is not enough money in your account.

If a payment takes you over your agreed overdraft limit you may also pay a fee. Some banks will apply a charge every day you are over your overdraft limit.