Payday Loan Calculator Australia

Use this calculator to see the real cost of a payday loan, a Small Amount Credit Contract (SACC), before you take one out. Enter how much you want to borrow and over how many months, and it shows the fees and the total you will repay.

How payday loan costs work

Payday lenders cannot charge interest in the usual way. Instead, the law caps two fees:

• An establishment fee of up to 20% of the amount borrowed (a one-off charge).
• A monthly fee of up to 4% of the amount borrowed, for each month of the loan.

So a $1,500 loan over six months has a $300 establishment fee plus $60 a month ($360 total), meaning you repay $2,160, which is $660 more than you borrowed. That works out to a very high effective cost compared with a personal loan or credit card.

Why the cost is so high

Because the fees are a flat percentage of the amount rather than an interest rate on the reducing balance, short-term payday loans are one of the most expensive ways to borrow. The calculator shows the cost per $100 borrowed and a rough annualised figure so you can compare it fairly with other credit.

A worked example

Suppose you borrow A$1,000 over four months to cover an unexpected car repair. The fees stack up like this:

• Establishment fee: 20% of A$1,000 = A$200, charged once.
• Monthly fee: 4% of A$1,000 = A$40 per month × 4 months = A$160.
• Total fees: A$360.
• Total repaid: A$1,360, in four instalments of A$340.

You have paid A$360 to borrow A$1,000 for a third of a year, a cost of A$36 per A$100 borrowed. Expressed as an annualised rate that is well into triple digits, far above a credit card at around 20% a year or a personal loan at roughly 10%. The shorter the term, the more punishing the establishment fee becomes as a proportion of the total, because that 20% is charged no matter how quickly you repay.

Stretch the same A$1,000 loan to 12 months and the monthly fees alone add up to A$480 (4% × 12), on top of the A$200 establishment fee, for A$680 in total, or A$68 per A$100. Longer terms lower each instalment but raise the total cost, so there is no "cheap" version of a SACC: you either pay a high proportion quickly or a higher amount slowly.

Your repayments are capped too

Beyond the fee caps, the law limits how much of your income can go to SACC repayments. For most borrowers, total payday-loan repayments cannot exceed 10% of your net (after-tax) income, and stricter rules apply if you receive most of your income from Centrelink. A lender is also required to check that the loan is suitable and, in many cases, to presume the loan is unsuitable if you have had two or more other payday loans in the past 90 days. If a lender is not applying these protections, that is a warning sign.

Cheaper alternatives

Before taking a payday loan, it is worth checking:

• A No Interest Loan (NILS) for essential goods, or a low-interest StepUP loan.
• Asking for a payment plan or hardship arrangement from the biller you need to pay.
• A personal loan or an existing credit card, which are usually far cheaper.
• Centrelink advance payments if you receive a payment.
• A utility relief grant or concession from your state government if the bill you need to pay is electricity, gas or water.

Free, confidential financial counselling through the National Debt Helpline can also help you negotiate with creditors and build a plan, often resolving the underlying shortfall without any new borrowing at all.

Common mistakes to avoid

• Judging the loan by the monthly fee alone. The 4% monthly fee looks small next to a 20% establishment fee, but over several months the monthly fees can quietly overtake it.
• Rolling one loan into another. Taking a new SACC to repay an old one traps you in a cycle where fees pile on fees instead of getting you ahead.
• Assuming early repayment saves the establishment fee. It does not; that fee is charged up front regardless of how fast you clear the balance.
• Overlooking free financial counselling. The National Debt Helpline (1800 007 007) offers free, independent help before you commit.

Interpreting your result

The most useful number the calculator gives you is the cost per A$100 borrowed, because it strips away the loan size and lets you compare a payday loan directly against any other credit. If borrowing A$100 costs you A$24 over four months, that is your yardstick: a credit card charging around 20% a year would cost only a few dollars over the same period. The annualised figure is deliberately blunt; it translates the flat fees into a comparable yearly rate so the true expense is not disguised by the short term. If that annualised number shocks you, that is the point: it is telling you to exhaust the cheaper alternatives first.

Assumptions and limitations

The calculator uses the maximum legal fee caps; a specific lender may charge less. It does not include default fees or government charges, and applies to SACCs (loans up to $2,000 over up to 12 months). Your repayments also cannot exceed a set share of your income. Loans above A$2,000, or over longer terms, fall under different rules (Medium Amount Credit Contracts) that this tool does not model.

This is general information, not financial advice.

About This Payday Loan Calculator

Use this payday loan calculator to get an instant, accurate estimate. The figures follow official ASIC MoneySmart guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.