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SESK: Stuff Everyone Should Know · sesk.info/payday-loan-400-apr

A two-week payday loan charges $15 for every $100. What yearly rate (APR) is that?

Almost 400%.

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Huh, didn't know that: APR turns any loan's cost into a yearly rate, so you can compare loans of different lengths.

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References

Answer: Almost 400%. $15 sounds small, but it's for just two weeks, and a year has 26 of them. Stretched over a year, that fee works out to an APR of almost 400 percent.

  1. CFPB: What are the costs and fees for a payday loan? www.consumerfinance.gov/ask-cfpb/what-are-the-costs-and-fees-for-a-payday-loan-en-1589
    This equates to an annual percentage rate of almost 400 percent for a two-week loan.
    Checked 2026-10-09.
  2. OCC HelpWithMyBank.gov: Glossary (Annual Percentage Rate) www.helpwithmybank.gov/glossary/index-glossary.html
    The cost of credit on a yearly basis, expressed as a percentage.
    Checked 2026-10-09.

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