David is a Chartered Financial Analyst with 15 years of experience in consumer lending and short-term credit analysis.
This 4-in-1 Cash Advance calculator helps you understand the true cost (APR) of a short-term loan. Enter any three variables—Advance Amount, Total Fee, Term (in days), or APR—to solve for the fourth.
Cash Advance Calculator
Cash Advance APR Formulas
R = (F / P) * (365 / T) * 100
Solve for Total Fee (F):
F = P * (R / 100) * (T / 365)
Solve for Advance Amount (P):
P = F / ((R / 100) * (T / 365))
Solve for Loan Term (T):
T = (F / P) / (R / 100) * 365
Formula Variables
- (P) Advance Amount: The amount of cash you receive (Principal).
- (F) Total Fee: The total dollar amount of fees or interest charged for the advance.
- (T) Repayment Term (Days): The length of the loan, in days (e.g., 14 days, 30 days).
- (R) Annual Rate (APR): The Annual Percentage Rate, which represents the true annual cost of the loan.
Related Calculators
- Payday Loan Calculator
- Personal Loan Calculator
- Loan Interest Calculator
- Debt Consolidation Loan Calculator
What is a Cash Advance?
A “cash advance” is a short-term, high-interest loan, often taken against your credit card or your next paycheck (also known as a payday loan). While they offer quick access to cash without a lengthy approval process, this convenience comes at an extremely high cost.
Unlike a regular credit card purchase, a cash advance typically has no grace period. Interest starts accruing immediately, and the interest rate (APR) is almost always significantly higher than your card’s standard purchase APR. Additionally, there is often a flat fee (e.g., 5% of the advance amount) charged upfront.
Because the loan terms are so short (e.g., 14-30 days), the fees may seem small, like “$15 per $100 borrowed.” However, when this fee is annualized, the APR can be astronomical—often 300% to 500% or more. This calculator helps you see that true annual cost (APR) so you can understand the real price of the loan.
How to Calculate Cash Advance APR (Example)
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Identify Your Loan Details
You need $500 (P) to cover an emergency bill. You take out a cash advance that must be repaid in 14 days (T). The lender charges a total fee of $50 (F). You want to find the APR (R).
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Find the Cost per Day
First, find the fee as a percentage of the loan: $50 / $500 = 0.1 (or 10% for 14 days).
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Apply the APR Formula
The formula to annualize this cost is: R = (Fee / Principal) * (365 / Term in Days) * 100
Formula: R = (F / P) * (365 / T) * 100 -
Calculate the APR
R = ($50 / $500) * (365 / 14) * 100
R = 0.1 * 26.07 * 100
R = 2.607 * 100
R = 260.7% -
Final Result
That $50 fee on a 14-day loan is equivalent to a loan with an APR of 260.7%.
Frequently Asked Questions (FAQ)
They are similar but not identical. A credit card cash advance is taken against your card’s credit limit and usually has a high, variable APR and a flat fee. A payday loan is taken against your next paycheck and often has a fixed fee, which translates to an even higher APR. Both are extremely expensive forms of credit.
Why is the APR so high?The APR seems high because the loan term is very short. A $15 fee for a 14-day loan is a 1.07% *daily* interest rate. When you multiply that daily rate by 365 days, it becomes a massive annual number. The APR is the standard way to compare the cost of all loans, and it reveals how expensive these short-term products are.
What’s the total fee for a cash advance?You can use this calculator to find out. If you know the APR (R) a lender advertises, enter it along with the Advance Amount (P) you want and the Term (T) in days. Leave the “Total Fee (F)” field blank and click “Calculate.” The result will show you the exact dollar fee you will be charged.
Are there alternatives to cash advances?Yes. Before taking a cash advance, consider alternatives like a personal loan from a credit union (which has much lower APRs), asking for an advance from your employer, or even a 0% APR credit card promotion if you can pay it off during the promotional period.