Calculate the payday loan APR

You must disclose the cost of borrowing for a payday loan by stating an annual percentage calculation (APR). The most that may be charged for a payday loan in BC is $15 per $100 borrowed. This means that a 14-day loan with a single repayment on the 14th day of the term that charges the maximum cost of borrowing will have an APR of 391.07%.

You can use this formula to calculate the APR:

APR = (100 x C) / (T x P) where:

C = the total cost of borrowing;
T = the length of the loan term expressed in years;
P = the average outstanding principal over the term of the loan

If you are charging a rate other than $15 per $100 borrowed, a different APR will apply to those loans.

Calculate the APR using this spreadsheet.