FrontPay
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Cash advance vs payday loan: the real cost difference

One quotes a fee, one quotes a rate, and nothing can be compared until both are in the same units. Here is the conversion, applied to real offers including our own, plus the structural difference that matters more than any of the numbers.

391%APR on a typical $15-per-$100 payday loan
14 daysTypical payday loan term
$225Fees on $300 after five rollovers
$0Rollover fees at FrontPay — we do not offer them

A payday lender quotes a fee. A cash advance quotes a subscription. An installment lender quotes an APR. Three different units, so nothing can be compared until you convert them into the same one.

This page shows how to do that conversion in about ten seconds, applies it to real offers including our own, and explains the structural difference that matters more than any of the numbers.

Turning a flat fee into an APR

Any fee can be expressed as an annual rate with one formula. It is the only way to compare a two-week fee against a twelve-month interest rate.

APR = (fee ÷ amount borrowed) × (365 ÷ days of the loan) × 100
A $15 fee on $100 for 14 days: (15 ÷ 100) × (365 ÷ 14) × 100 = 391% APR.
The same formula applied to offers you will actually be shown.
OfferFeeTermEquivalent APR
Typical payday loan$15 per $10014 days391%
Higher-cost payday loan$20 per $10014 days521%
Very short payday loan$15 per $1007 days782%
Advance app express fee$5.99 on $20014 days78%
FrontPay membership on $200$14.9914 days195%
FrontPay membership on $400$14.9930 days46%
Read our own two rows carefully. A $14.99 membership is cheap in dollars but it is a fixed fee, so the smaller and shorter the borrowing, the worse the APR looks — 195% on $200 over a fortnight, 46% on $400 over a month. It is genuinely good value at $400 to $500 across a full cycle, and mediocre value on $200 for a week. We would rather show you that than hide behind "0% interest".

The difference that matters more than the rate

APR is the honest comparison number, but it is not the thing that does the damage. The damage is structural: a payday loan is due in full on your next payday, in a single balloon payment.

If you could spare $345 out of one paycheque, you would not have needed to borrow $300. So the loan is rolled over. A new fee is charged, the principal is untouched, and the cycle restarts.

$300 payday loan at $15 per $100, rolled over. The balance never moves.
ElapsedFees paidStill owed
14 days$45$300
28 days$90$300
42 days$135$300
56 days$180$300
70 days$225$300

Ten weeks in, $225 has been paid and the debt is exactly the size it started. That is not a borrower failing — it is what a balloon payment does to anyone whose budget was already tight enough to need the loan.

An installment structure removes the mechanism. Each payment reduces the principal, so the balance falls whether or not the month goes well, and there is a date on which it ends.

A lit home at the end of a garden path at dusk

Being straight about it

We are cheaper than payday lending. We are not cheap.

Our interest-bearing products run from 35.99% to 179.99% APR. That is a fraction of 391%, and it is still expensive credit. If a credit union or a bank will lend to you, they will beat us comfortably.

Side by side

Typical terms, 2026. Payday figures vary by state; some states cap or ban them entirely.
Payday loanFrontPay
Amount$100 – $500$200 – $5,000
RepaymentWhole balance on your next paydayAcross 1–24 scheduled payments
Typical cost391% APR and up0% with membership, or 35.99% – 179.99%
RolloversCommon, and where the cost compoundsNot offered
Late feesUsualNone on Advance or Flex
Early payoffSometimes penalisedNever penalised
Builds creditNoYes, on installment loans and credit lines
Collections on an advanceYesNo, and never sold or reported

Cheaper than both, if you can get it

Credit union PAL

Payday alternative loans are capped at 28% APR by federal rule. $200 to $2,000. You need to be a member, which is often easy and quick.

Employer earned wage access

Many employers now offer access to wages already earned, often free. Ask payroll before you borrow anywhere.

Ask the biller first

Utilities, hospitals and landlords routinely agree payment plans. A plan costs nothing; borrowing to pay in full costs interest.

Dial 211

Free referral to local emergency help with rent, utilities and food. No repayment involved at all.

Bank overdraft line

Some banks offer a small overdraft line of credit far below any of these rates. Worth one phone call.

Existing credit card

Even a card cash advance at 25–30% plus a 5% fee undercuts everything on this page, if you have the limit.

Questions about the comparison

Is a cash advance the same as a payday loan?

No. The important difference is structure rather than branding. A payday loan is due in full on your next payday, which is what drives rollovers. A cash advance or installment loan is repaid across scheduled payments that each reduce the balance. The cost is usually lower too, but the repayment shape is what changes outcomes.

How do I convert a fee into an APR myself?

Divide the fee by the amount borrowed, multiply by 365 divided by the number of days, then multiply by 100. A $15 fee on $100 for 14 days works out at 391% APR. Doing this to every offer in front of you is the fastest way to see which is actually cheapest.

Is 0% interest really 0%?

The interest is genuinely zero, but the $14.99 membership is a cost, and expressing it as an APR is the fair comparison. On $400 over a month it works out around 46%; on $200 over a fortnight it is around 195%. Cheap in dollars, but not free, and worst value on the smallest shortest borrowing.

Why are payday loan APRs so high if the fee looks small?

Because APR annualises. A $15 fee on $100 is 15% of the amount for two weeks, and there are roughly 26 two-week periods in a year. The fee is small; the rate of charge is not. That gap is exactly why the fee is quoted instead of the rate.

Do you offer rollovers?

No. You can ask us to move a payment date before it falls due, at no cost, but there is no product here that charges a new fee to extend the same balance.

Are payday loans illegal in some states?

Several states cap the rate at a level that makes storefront payday lending unviable, and others prohibit it. Rules change, so check your own state's current position rather than relying on any lender's summary, including this one.

See all 19 questions and answers →

Check your rate

Short-term credit is expensive and is designed for temporary shortfalls, not long-term needs. Free impartial guidance is available from the CFPB. Not available in every state.