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Guide

A $500 Loan: The Most Common Cap in America, Priced Honestly

Five hundred dollars is the most common state payday cap in America, which makes the $500 loan the most common payday request in the country. It is also the amount where the alternatives deserve the hardest look before you sign. At the typical 15% fee, $500 costs $75 for 14 days, about 391% annualized; in Alabama the 17.5% fee makes it $87.50, about 456%. Both versions repay in one debit of $575 or $587.50 on your next payday. Cheaper money exists at this size, and it is usually worth an extra day or two of waiting.

Price the alternatives first

Route Real cost on $500 Repayment shape
Credit union PAL, $200-$2,000 About $12 a month at the 28% APR cap Fixed payments over a few months
App advance $0-$15 tip, if your limit reaches $500 One debit on next paycheck
Installment loan, $100-$5,000 About $54 of interest at 36% APR over 6 months, about $155 at 100% APR Equal monthly payments
Tribal installment, $300-$2,500 APR 400%-800% Monthly payments over 3-12 months
Payday, 15% state $75 flat $575 in one debit, 14 days
Payday, Alabama $87.50 flat $587.50 in one debit

Read the installment row twice. At a mid-range 36% APR, six months of $500 costs about $54 in interest, less than a single 15% payday fee. Subprime pricing at 100% APR still runs about $155 over the same term, cheaper than two rollovers. The catch is qualification and time: installment lenders underwrite harder and fund slower, and app advances often cap new users far below $500. The full ranked list, with every tradeoff spelled out, is in our alternatives guide.

Same-day reality

When approved When money lands
Storefront payday loan Cash at the counter the same day
Online payday loan Same day at some lenders, next business day at most
App advance Minutes to a few hours, if your limit covers $500
Credit union PAL 1-2 business days

What $500 costs at payday

State fee ceilings run from about $10 to $30 per $100 borrowed, and 15% is the most common number, which is where $75 comes from. Repayment is a single $575 debit on your next payday, 14 days away in most states. Washington’s $700 ceiling leaves room for this amount, and so do most other caps. The number to fear is the rollover: each renewal adds another $75 without touching the principal, so four renewals cost $300 to stand still on $500. If two renewals sound likely, the loan is the wrong shape for the problem.

Who qualifies

The baseline is 18 or older, verifiable income of roughly $1,000 a month, and an active checking account, with a soft check rather than a hard credit pull at most lenders. At this amount the honest screen is arithmetic: $575 out of one paycheck is a large share of a $1,000-to-$2,000 deposit, and lenders that approve it anyway are transferring their risk to you. Do that math before they do.

When $500 should be an installment instead

If the repayment cannot fit one paycheck, spread it out. Installment loans run $100-$5,000 over 3-24 months at APRs from 6.63% to 225%, sized to income rather than the calendar. For borrowers banks will not serve, tribal installment lenders offer $300-$2,500, up to $3,500, over 3-12 months at 400%-800% APR: more expensive than a credit union by far, but structurally different from a rollover chain, and our tribal loans hub explains how those terms work. If the true need is larger than $500, the $1,000 page prices the next tier.

State rules in one paragraph

Where payday is licensed, $500 sits under most state caps, but the fee varies by state and 13 states ban the product outright. This site does not serve AR, NH, VT, WV, or NY, and no referral service can promise approval; what we do is route a request to licensed lenders who can legally fund it in your state.

Frequently asked questions

How much does a $500 payday loan cost in total?
$75 at the typical 15% fee, repaying $575 in one debit about 14 days later. In Alabama the 17.5% fee makes it $87.50, repaying $587.50. Each rollover adds the same fee again without reducing the principal.
Can I borrow $500 everywhere?
No. Thirteen states ban licensed payday lending, caps vary where it is legal, and this site does not serve AR, NH, VT, WV, or NY. A credit union PAL covers $500 anywhere credit unions operate.
Is a $500 installment loan cheaper than a $500 payday loan?
In total dollars, usually yes: about $54 of interest at 36% APR over six months versus $75 for 14 days. The installment loan costs more months and harder qualification, and subprime APRs up to 225% can erase the gap.

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