Flexible: payday loans are short-term, which means you can pay them back easily when you get your next check. Amount: your income limits the amount you can borrow at any given time, which makes it easier to pay loans back when they are due. This helps to prevent the cycle of debt.
How Payday Loan Interest Rates Are Calculated. The annual percentage interest rate (APR) for payday loans is calculated by dividing the amount of interest paid by the amount borrowed; multiplying that by 365; divide that number by the length of repayment term; and multiply by 100.