Simple Cash Advance Calculator (APR)

Here is a free, simple cash advance calculator that gives you the true interest rate on a loan. Detailed instructions are below.

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Instructions

Step 1

Enter the amount you plan to borrow or receive as a cash advance (e.g., $100).

Step 2

Enter the number of days until your next paycheck (or the anticipated number of days you will use the cash advance before paying it back).

Step 3

Enter the flat fee that your cash advance app will charge for the service.

For example, if your app charges you $3.99 for an “instant” transfer, enter $3.99.

Step 4

Tap or click the “Calculate APR” button.

Step 5

The calculator will return a value called APR. The annualized percentage rate (APR) is the interest rate you are paying on this cash advance.

Compare this APR to your credit card interest rate (usually 15% to 30%) or other debt, and you will find the cash advance apps may be convenient, but they are a very expensive option for instant cash.

About Cash Advance Loans

Cash Advance loans are some of the worst financial products available to consumers. The APRs are often similar to payday loans and title loans.

Cash advance apps provide the same bad financial product as payday loans, but are more convenient, and thus, dangerous.

You may not realize it, but the small flat fee these apps charge equates to significant interest charges when converted to an annualized rate.

Loans like mortgages and credit card debts are annualized, meaning the percent charged is based on one year. For example, if you borrow $100 at an interest rate (APR) of 15%, you’ll pay $15 of interest after one year.

When you convert the flat fee of a cash advance app loan to an annualized percentage rate, you can see how expensive they are.

Look for alternative borrowing options like personal loans, credit cards, or borrow against your savings instead of using cash advance apps.

Use this cash advance calculator to get smarter about your money before you move forward with a cash advance.

For more information about cash advance apps and loans, please visit the CFPB website.