How to Calculate Payday Loan APR
$100 loan, $15 fee, 14 days
391% APR
$300 loan, $45 fee, 14 days
391% APR
$500 loan, $75 fee, 30 days
182% APR
Payday Loan APR by State — 2026 Chart
| State | Rate Cap | Max Fee | Typical APR | Max Loan | Status |
|---|---|---|---|---|---|
| Alabama | No cap | $17.50 per $100 | 456% | $500 | Legal |
| Alaska | No cap | $15 per $100 + $5 fee | 520% | $500 | Legal |
| California | $300 max loan | $17.65 per $100 | 460% | $255 (after fee) | Legal (capped) |
| Colorado | 36% APR | 36% APR max | 36% | $500 | Rate capped |
| Florida | 10% + $5 fee | $10 per $100 + $5 | 304% | $500 | Legal |
| Hawaii | 36% APR | 36% APR max | 36% | $600 | Rate capped |
| Idaho | No cap | Unlimited | 652%+ | 20% of gross income | Legal |
| Illinois | 36% APR | 36% APR max | 36% | $1,000 | Rate capped |
| Indiana | $15/$100 up to $250 | Tiered fee | 382% | 20% of gross income | Legal |
| Kansas | $15 per $100 | $15 per $100 | 391% | $500 | Legal |
| Kentucky | $15 per $100 | $15 per $100 | 460% | $500 | Legal |
| Louisiana | 16.75% per $100 | $16.75 per $100 | 436% | $350 | Legal |
| Michigan | Tiered fee | $15/$100 (first $100) | 369% | $600 | Legal |
| Mississippi | $20 per $100 | $20 per $100 | 521% | $500 | Legal |
| Missouri | No cap | 75% of loan face value total | 1,950% max | $500 | Legal |
| Nevada | No cap | Unlimited | 652%+ | 25% of monthly income | Legal |
| Ohio | 28% APR + fees | Complex fee schedule | ~110% (3 months) | $1,000 | Reformed |
| Oklahoma | $15 per $100 | $15 per $100 | 391% | $500 | Legal |
| South Carolina | 15% of check | 15% fee | 391% | $550 | Legal |
| Tennessee | 15% per $100 | $15 per $100 | 391% | $500 | Legal |
| Texas | No cap | Unlimited (via CSO) | 390%–664% | Based on income | Legal |
| Washington | $15 per $100 | $15 per $100 | 391% | $700 | Legal |
| Wisconsin | No cap | Unlimited | 574%+ | No limit | Legal |
| Wyoming | No cap | Unlimited | 780%+ | No limit | Legal |
Banned states (no payday loans): New York, New Jersey, Pennsylvania, Massachusetts, Connecticut, Georgia, Maryland, Vermont, North Carolina, Arizona (2010), Arkansas (2011). PrimeLendings offers personal installment loan alternatives in these states with APR 29%–99%.
How to Get the Lowest Payday Loan Rate
- Choose an installment loan over a payday loanRepaying over 3–12 months dramatically lowers APR from 391% to 36%–99%.
- Borrow for a longer termA 30-day loan has lower APR than the same loan for 14 days because APR is annualized.
- Compare multiple lendersPrimeLendings shows offers from multiple lenders so you can choose the lowest APR option.
- Improve your income documentationLenders offer better rates to borrowers with stable, verifiable income and active bank accounts.
- Check your state's credit union for PAL loansFederal credit union Payday Alternative Loans are capped at 28% APR for members.
Frequently Asked Questions
What is the average interest rate on a payday loan?
The average payday loan APR in the United States is approximately 391% — based on a $15 fee per $100 borrowed for a 14-day term. However, rates vary significantly by state: from 36% in Illinois to over 660% in Texas and Nevada where no rate caps exist.
How is payday loan APR calculated?
Payday loan APR = (Fee / Loan Amount) × (365 / Loan Term in Days) × 100. Example: $15 fee on a $100 loan for 14 days = ($15 / $100) × (365 / 14) × 100 = 391.07% APR. Federal TILA law requires every lender to disclose APR before you sign.
Which states have the lowest payday loan interest rates?
States with the lowest payday loan APR caps include: Illinois (36% APR cap), Colorado (36% APR cap), Hawaii (36% APR cap), California ($300 limit, ~460% APR), and Ohio (28% monthly maintenance fee + fees, ~110% APR for 3-month loans).
How can I get a lower interest rate on a short-term loan?
To get a lower rate: (1) Apply for an installment loan instead of a payday loan — APR is typically 36%–99% vs. 300%–664%. (2) Borrow for a longer term — longer repayment lowers annualized APR. (3) Check credit union PAL loans (max 28% APR). (4) Use PrimeLendings to compare multiple lenders and choose the lowest offer.
Compare Rates From Multiple Lenders
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