# Payday Loan vs. Alternatives — Cost Comparison Calculator | Big Daddy Loans > Compare the real cost of a payday loan against a credit-union PAL, an earned-wage app, a cash advance, an overdraft, and a small installment loan — side by side. Источник: https://bigdaddy-loans.com/tools/payday-vs-alternatives/ --- FREE TOOL · NO SIGN-UP # Payday Loan vs. Alternatives Six ways to cover the same shortfall — ranked by what each one actually costs you. Set the amount and the days, and compare. RO **Reviewed by [Roman Okafor, AFC®](/authors/roman-okafor/)** · Last updated May 24, 2026 Amount you need $100**$300**$1,000 Days until you can repay 7**14 days**60 **Understanding the numbers:** the displayed costs are average projections, not precise quotes. Borrowing options based on time (like PALs, installment loans, cash advances) become more expensive the longer you have the funds, while fixed-fee choices (such as earned wage access or overdraft protection) remain constant. Your individual cost will be affected by your selected provider, state regulations, and your personal qualifications. ## The six options, and how each is priced Every option here solves the same problem — money now, repaid soon — but they are priced in completely different ways, and the gap is large. - **Payday loan** — a flat finance fee, commonly $15–$20 per $100 for a two-week term. Annualized, that is roughly 400% APR or more. - **Credit-union Payday Alternative Loan (PAL)** — federally capped at 28% APR, with an application fee of no more than $20. - **Earned-wage access app** — advances pay you have already earned, usually for a small flat fee (modeled here at about $5). - **Small installment loan** — a longer-term loan; the safest examples are capped near 36% APR. - **Credit card cash advance** — an upfront fee of about 5% plus interest near 25–30% APR. - **Bank overdraft** — typically a flat fee of about $35 per item; cheap once for a tiny gap, expensive if it repeats. ## Why the payday loan almost always lands last Because its price is a flat fee charged every term, a payday loan's effective APR is enormous and it does not get cheaper if you repay quickly — you still owe the whole fee. The lower-APR options charge interest only for the days you actually hold the money, so the faster you repay, the less they cost. That is why, across almost every amount and timeframe, a payday loan is the most expensive line on this chart. See the full ranked list on our [alternatives to payday loans](/payday-loan-alternatives/) page, and check what is legal where you live on your [state payday-loan guide](/state/). ## Frequently asked questions Which payday loan substitute has the lowest cost? Usually a small installment loan or credit-union loan near 36% APR, an earned-wage access advance, or a 28%-APR Payday Alternative Loan — each typically a fraction of a payday loan's cost. Does a cash advance from a credit card cost less? Usually yes — about 5% upfront plus 25–30% APR is far below a payday loan's effective rate, though still pricier than a PAL or installment loan. Can these cost estimates be guaranteed? No. They are typical-cost estimates for comparison. Your actual cost depends on the provider, your state, the exact terms, and your eligibility. **Note:** This comparison uses representative pricing assumptions (payday ≈ 456% APR / $17.50 per $100; PAL 28% APR + $20 fee; installment 36% APR; cash advance 30% APR + 5% fee; earned-wage access ≈ $5 flat; overdraft ≈ $35 flat). It is educational, not a quote or an offer. Big Daddy Loans is a lead-generation service, not a lender, and charges applicants no fee. This is general information, not financial advice. #### Compare alternatives by rank A complete ranking of 15 less expensive choices, sorted according to their APR. [Payday loan alternatives](/payday-loan-alternatives/) 🔒 Browse options without starting an application --- #### Additional resources - [Rollover cost simulator](/tools/rollover-simulator/) - [Affordability checker](/tools/affordability-checker/) - [Loan cost calculator](/tools/cost-calculator/)