Payday and High-Cost Credit True Cost Calculator

This calculator shows the true cost of a payday loan or other high-cost credit in New Zealand, and applies the consumer protections built into the Credit Contracts and Consumer Finance Act, known as the CCCFA. High-cost credit, broadly loans charging 50 percent a year or more, is the most expensive mainstream way to borrow, and since 2020 the law has put hard limits on it: the cost of credit cannot exceed 0.8 percent of the amount borrowed per day, and the total of all interest and fees is capped at 100 percent of the first advance, so you can never be required to repay more than twice what you originally borrowed. You enter the amount, the daily interest and fee rate, the term in days and any establishment fee, and the calculator works out the raw cost, applies the total cost cap, and shows what you would actually repay, the cost of credit, and whether the cap has kicked in. Even with these protections, high-cost credit is dear, and the figure is meant to make that plain. Before taking one on, it is almost always cheaper to speak to a free financial mentor through MoneyTalks on 0800 345 123, ask Work and Income about an advance, or approach a community lender offering low or no-interest loans.

High-cost credit cost is capped at 0.8% of principal per day and total interest plus fees at 100% of the first advance. Check current CCCFA rules. Estimate only.