Full principal
$300
Cash received at the start
See how the same dollar charge changes when the term changes
Annualization converts a charge for a short period into a yearly percentage. This calculator makes that relationship visible for one simple cash flow; it is not a universal legal APR engine.
Bottom Dollar Payday is not the lender. These tools help you compare and prepare; they do not submit a loan application or promise approval. Availability and any offer come from the actual provider.
Finance charge
$45
Charge paid with principal at the end
Charge divided by principal
0.15
Fraction of principal for this term
Local worksheet
Simple annualized-rate worksheet
Keep the same amount and charge, then change the days to see the effect. This is one full advance followed by one repayment.
Enter 0 where applicable. Use a decimal point and no commas. No data is sent.
Result
Method and limits
Single-payment scope only: full principal received at day 0; one payment of principal plus the entered finance charge after whole days. Repayment = principal + charge. Simple annualized rate = charge ÷ principal × 365 ÷ days × 100. No compounding, installments, withheld fees, later advances or extensions. This educational estimate is not a certified Regulation Z APR.
Start with your situation
Which number are you trying to interpret?
The charge, the period percentage and the annualized percentage answer different questions.
I know the cash received, finance charge and days
Use the calculator when the full principal arrives at the start and the only repayment is principal plus that charge at the end. Keep all three inputs tied to the same agreement.
The fee is “15%” and I want to know whether that is APR
A 15% charge for a short term is not automatically a 15% annual rate. The term matters. In the simple model, multiply the period charge ratio by 365 divided by the number of days. [R35]
The agreement has multiple dates, installments or withheld fees
Use the creditor’s APR disclosure and an appropriate cash-flow method. Regulation Z APR accounts for timing and amount; a single-period shortcut cannot certify those other structures. [R33]
Follow the units through the formula
The formula used here is: simple annualized percentage = finance charge ÷ full principal received × 365 ÷ days × 100. The first ratio is the charge per borrowed dollar; 365/days converts the term to the stated annual basis. It does not assume that you actually take repeated loans for a year.
| Input or step | Example | Unit or meaning |
|---|---|---|
| Full principal | $300 | Cash received at the start |
| Finance charge | $45 | Charge paid with principal at the end |
| Charge divided by principal | 0.15 | Fraction of principal for this term |
| Term | 14 days | Time from advance to repayment |
| Simple annualized result | Approximately 391.07% | A yearly expression of the entered charge |
On a narrow screen, scroll inside the table to see every column.
The CFPB uses annualization to explain why a payday charge can correspond to a large APR. The simplified calculation here remains limited to the stated cash flow. [R35]
Change only the days to understand the effect
Keep principal at $300 and charge at $45. A seven-day term produces approximately 782.14%, a 14-day term approximately 391.07%, and a 30-day term 182.50% on this simple 365-day basis. In all three illustrations the scheduled payoff is still $345.
| Term | Charge in dollars | Simple annualized rate | Single payoff |
|---|---|---|---|
| 7 days | $45 | 782.14% | $345 |
| 14 days | $45 | 391.07% | $345 |
| 30 days | $45 | 182.50% | $345 |
On a narrow screen, scroll inside the table to see every column.
The lower annualized figure in the longer-term illustration does not reduce its $45 charge. If a real extension adds a fee, it is no longer this same-charge comparison.
Do not confuse annualization with compounding
This tool scales one period’s charge linearly to an annual basis. It does not reinvest interest, repeatedly add new principal or calculate an effective annual yield. Do not multiply the original balance by the displayed annualized percentage and call that the amount due at the short-term deadline.
For the loaded example, the period charge is 15%, the annualized rate is approximately 391.07% and the payment is $345. Each is useful, but replacing one with another changes the meaning of the disclosure.
Recognize when the denominator or timing changes
A fee withheld from a stated principal changes the amount actually received. Separate fees paid at the start or several later installments also change the cash-flow pattern. Simply placing every fee in the end-of-term box can produce the wrong rate for that agreement. [R33]
Use the actual disclosure when comparing legal APRs. For a cash-cost comparison, record net proceeds, every payment and separately paid charges once; that total-cost method still does not certify APR.
Count the days from the actual agreement
Enter whole days between the modeled receipt and single repayment. Do not use a promotional statement such as “until payday” without confirming the actual date, and do not silently retain 14 days if the agreement specifies another term.
The tool uses a fixed 365-day annualization convention for illustration. It is not a date parser and does not determine contract day-count conventions, irregular first periods or the legal classification of particular charges. [R33]
Keep dollars and percentages together when deciding
Record the net money, payoff amount, due date and disclosed APR together. A large annualized rate highlights the price of short-term borrowing, but a correct rate alone does not tell you whether the payoff fits the budget. A smaller rate alone does not prove an offer meets your cash need.
Use the cost calculator for one-payment dollars, the repayment tool for its supported monthly model and the two-offer calculator for complete cash totals. These outputs explain terms; they do not grant credit or promise an available rate.
Questions before your next step
Is a $15 charge on $100 the same as 15% APR?
Not necessarily. It is a 15% charge for the stated period. Annualization also depends on the number of days. [R35]
Why does changing the term change the rate but not the dollars?
In this controlled example the charge stays fixed. The annualization factor changes, while principal plus charge does not.
Does the output certify the creditor’s Regulation Z APR?
No. It is a simple educational rate for a restricted cash flow. The actual legal calculation may require different fee treatment or payment timing. [R33]
Related decisions
Ready for your next step?
Continue to the online application. Review the terms of any offer before you accept.
Sources and scope
Sources support general product facts, not a Bottom Dollar lender offer or endorsement. Numerical scenarios are illustrations, not available rates or terms.
