## How To Calculate APR On A Payday Loan APR stands for Annual Percentage Rate. If you are like most consumers, you probably do not know how to calculate APR on a payday loan.  Luckily, the process is not exceedingly difficult to do and the answer you get will help to clarify how much these loans really cost.  Borrowers simply need to divide the total finance charge of their loans by the total loan amount.  The resulting answer should then be divided by the actual loan term in days.

### APR Formula

This is the formula for calculating APR
APR = ((Loan Fee/Loan Amount) / (Loan Days/365) * 10000) / 100

### Using An Online Calculator

If you are not mathematically inclined there are online calculators that will crunch the numbers for you.  These help people to avoid the hassles of learning how to calculate APR on a payday loan, even as they become able to gain the best deals from the cash advances that they secure.  Borrowers simply plug in the numbers for the finance charges, the loan amount and the loan term and the APR will be given to them in a matter of seconds.