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What APR Really Costs
The same $500 at four APRs, in dollars — and how to turn any offer into a total in a minute.
By REPLACE WITH REAL NAME, REPLACE — e.g. 8 years covering consumer credit · Reviewed by REPLACE WITH REAL NAME · 2 min read · Updated September 24, 2026
Lesson 1 of 9
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What you'll learn
- $500 costs about $542 at 28% APR, $800 at 160%, $1,023 at 260% and $2,437 at 779.97% on typical schedules.
- A flat fee hides a huge APR on a short loan: $15 per $100 for two weeks is almost 400%, by the CFPB's arithmetic.
- Always find the total you'll repay — a lender that leads with the payment is hoping you won't multiply.
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Why APR is hard to feel
APR — annual percentage rate — is the yearly cost of borrowing, including interest and most fees, expressed as a percentage. Lenders must show it. But a small loan repaid over a few weeks or months isn't a yearly thing, so a number like 780% doesn't connect to anything in your head. Dollars do.
The same $500, four ways
Here is what borrowing $500 costs at four APRs you'll see on this site, using each product's typical repayment schedule:
At 28% APR over six months — a credit union PAL — you pay back about $542. The loan costs you $42.
At 160% APR over seven months in biweekly installments — the middle of the range for lenders like OppLoans — you pay back about $800. The loan costs you $300.
At 260% APR on the same schedule — the low end of a house-brand returning-customer loan — you pay back about $1,023. The loan costs you $523, more than you borrowed.
At 779.97% APR over 224 days in sixteen biweekly payments — a first-time loan from CashOtter, CashLantern, MeteorLoans or CreditCube — you pay back about $2,437. The loan costs you $1,937, almost four times what you borrowed.
None of these numbers are hidden. They're just usually shown as a percentage, and a percentage doesn't hurt the way $1,937 does.
How to turn any APR into dollars
Use our loan-cost calculator: amount, APR, term and how often you pay. It shows the payment, the total you'll repay and the cost per $100 borrowed, and it lets you compare the same loan at 28% and 36% so you can see what you're paying for speed or access.
Without the calculator, use the lender's representative example — they're required to give one — and scale it. If the example says a $1,000 loan costs $2,000 to repay, a $500 loan on the same terms costs about $1,000.
Two traps
Fee-based loans. Some products quote a flat fee instead of a rate — "$15 per $100 borrowed". That sounds small. On a two-week payday loan it's almost 400% APR — the CFPB's own figure; on an eight-week Possible Finance loan the same fee is about 98% APR. The shorter the loan, the bigger the APR hiding inside a flat fee.
Payment-first advertising. A lender that leads with "just $152 every two weeks" is hoping you don't multiply by sixteen. Always find the total.
What's a fair price?
There isn't one number, but 36% APR is the line most regulators and lenders use to separate mainstream from high-cost credit; it's the cap for loans to service members and the ceiling in many states. Everything above it on this site carries the "Expensive credit" flag for that reason.
If you need money anyway
Start at the cheapest step you qualify for and work down only if you have to.
Questions people ask
Plain answers to the questions readers ask most often.
Is a lower payment always better?
No. A lower payment over a longer term usually means more total interest. Compare the total you repay, then check whether you can afford the payment.
Why is the APR on a two-week loan so high?
Because APR annualizes the cost. A $15 fee on $100 for two weeks is 15% for two weeks — repeated 26 times a year, that's almost 400%.
Do these lenders have to show me the APR?
Yes. The federal Truth in Lending Act requires the APR and total finance charge to be disclosed before you sign. If a lender won't show you, walk away.
Related
Keep comparing
Three useful next stops before you choose a lender.
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Figures were checked against these sources on September 24, 2026.
- CFPB — What are the costs and fees for a payday loan? ("almost 400 percent") ↗ consumerfinance.gov
- CFPB — Regulation Z (Truth in Lending) ↗ consumerfinance.gov
- CFPB — Military Lending Act (36% MAPR cap) ↗ consumerfinance.gov
Last verified September 24, 2026