Payday and High-Cost Credit True Cost Calculator NZ

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.

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%
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$860
total you would repay
Cost of credit$360
CCCFA cap (max cost)$500
Cap reached?No

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.

How it works

The calculator works out the raw cost as the amount times the daily rate times the number of days, plus the establishment fee. It then applies the total cost of credit cap, which limits all interest and fees to 100 percent of the amount borrowed, and reports the lower of the two. The total repaid is the amount plus the capped cost.

Worked example

Borrowing 500 dollars at 0.8 percent a day for 90 days is 500 times 0.8 percent times 90, which is 360 dollars of cost. That is under the 500 dollar cap, so you repay 860 dollars. Over a longer term the cost would hit the 500 dollar cap and stop there.

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Frequently asked questions

What are the CCCFA caps on high-cost loans?

For high-cost consumer loans (broadly those at 50 percent a year or more), New Zealand law caps the cost of credit at 0.8 percent of the principal per day, and limits the total interest and fees so you never repay more than twice the amount you first borrowed.

How does the total cost cap work?

The total interest and fees cannot exceed 100 percent of the first amount advanced. So a 500 dollar loan can never cost more than 500 dollars in interest and fees, meaning you repay at most 1,000 dollars.

Are payday loans a good idea?

They are among the most expensive ways to borrow even with the caps. Free alternatives like a MoneyTalks financial mentor, a Work and Income advance, or a low or no-interest loan from a community lender are almost always cheaper.