How Much Does a $1,000 Payday Loan Really Cost You?

A $1,000 payday loan typically costs between $1,150 to $1,300 if repaid in two weeks, but can escalate to $1,600 or more with rollovers.

Here's the breakdown: payday lenders charge between $15-$30 per $100 borrowed, meaning you'll pay $150-$300 in fees just to borrow $1,000 for 14 days. Whether you apply online or in-store, the fee structure is the same.

Below, we break down every cost you should know before taking out a $1,000 payday loan, plus better alternatives from Financer's comparison tool.

Want to know the true cost of any payday loan? Use this formula:

APR = (Fee ÷ Loan Amount) × (365 ÷ Loan Term in Days) × 100

Example 1: Standard 2-week loan

• $1,000 loan with $200 fee for 14 days
• APR = ($200 ÷ $1,000) × (365 ÷ 14) × 100 = 521%

Example 2: After one rollover (28 days total)

• $1,000 loan with $400 total fees for 28 days
• APR = ($400 ÷ $1,000) × (365 ÷ 28) × 100 = 521%

Notice the APR stays the same because you're paying the same rate for each 2-week period.

Payday Loan Costs Comparison

Here's a quick snapshot of how the APR and costs of a payday loan compare to your other loan options:

We can clearly see that payday loans cost significantly more than other types of loan options.

Take a look at our article: Best Payday Loans in 2026

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Here's where payday loans become truly expensive. If you can't repay your $1,000 loan plus fees in two weeks, you'll likely "roll over" the loan. Each rollover adds another fee.

Using the $20 per $100 example:

• Week 2: Owe $1,200, can't pay, roll over for $200 fee
• Week 4: Now owe $1,400
• Week 6: Roll over again, now owe $1,600
• Week 8: Roll over again, now owe $1,800

After just two months, you've paid $800 in fees on a $1,000 loan and still owe the original $1,000.

Here's a cost most people don't see coming: bank overdraft fees.

When payday lenders try to collect payment from an empty account, your bank charges overdraft fees of $35 or more per attempt.

27% of payday borrowers report overdrafting their accounts because of these loans. Before the new federal rule, lenders could attempt collection multiple times, triggering $35+ fees each time. Some borrowers faced $200+ in overdraft fees on top of their original loan cost.

Before taking a $1,000 payday loan, explore these options:

Let's be honest about both sides:

Payday loan regulations vary widely across the U.S. Some states ban them outright, while others allow APRs above 600%.

States that ban or cap payday loans at 36% APR: Arizona, Arkansas, Colorado, Connecticut, Georgia, Illinois, Maryland, Massachusetts, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, South Dakota, Vermont, West Virginia, and Washington D.C.

States with fewer restrictions: Texas, Utah, Nevada, Missouri, and several others allow payday lenders to charge $20 or more per $100 borrowed with minimal caps.

Before borrowing, check your state's payday lending laws to understand what protections you have. In states that cap rates at 36% APR, a $1,000 loan would cost roughly $14 over two weeks instead of $150-$300.

A $1,000 payday loan costs $1,150-$1,300 if repaid in two weeks, but most borrowers can't repay that quickly. The average borrower ends up paying $520 in fees to borrow just $375.

Before choosing a payday loan, explore credit union PALs, personal loans, or even credit card advances - all offer significantly lower costs.

For more information check out our article on alternative loan options or our comparison for payday loan brokers.