Question 1

How do you calculate APR-equivalent for an EWA advance?

Accepted Answer

We use the standard short-term APR formula: APR = (fee ÷ advance) × (365 ÷ days-until-repayment) × 100. Example: $100 advance, $4 fee, repaid in 10 days = (4/100) × (365/10) × 100 = 146% APR. This is the same formula the CFPB uses in its Paycheck Advance Data Spotlight.

Question 2

Why is the APR so high if the dollar fee is small?

Accepted Answer

Because APR annualizes the cost over a full year. A $4 fee on a 10-day, $100 advance is small in dollar terms but expensive when annualized — you'd be paying $146 in fees if you repeated this every 10 days for a year. APR is the apples-to-apples comparison metric for short-term credit. It's the right number to use when comparing EWA to payday loans, credit card cash advances, or overdraft fees.

Question 3

Is EWA still cheaper than the alternatives?

Accepted Answer

Usually yes — for occasional use. A typical EWA advance runs 100–200% APR while a payday loan runs 391%+ and an overdraft fee on a $100 shortfall over 7 days works out to over 1,800% APR. The math flips when you use EWA every single pay period: the fees compound into hundreds of dollars per year and you'd be cheaper off addressing the underlying budget gap. The calculator's annual projection makes that clear.

Question 4

What about tips — they're optional, right?

Accepted Answer

Technically yes, optional. In practice the app's default tip suggestion sets the anchoring point and most users tip something. Maryland and Connecticut now treat tips as interest under their EWA laws; California, Colorado, Massachusetts and Wisconsin have specific tip restrictions for EarnIn. Set the tip slider to $0 to see the cost if you decline; set it to whatever the app suggests to see the cost most users actually pay. The truth is usually somewhere in between.

Question 5

Does the monthly subscription change the math?

Accepted Answer

Yes — significantly if you only advance occasionally. Dave's $1/mo + 5% service fee, Brigit's $8.99/mo Plus tier, and Albert's $14.99/mo Genius are flat regardless of how much you advance. If you advance once a month, that subscription is the dominant cost. If you advance twice a pay period, the per-advance fee dominates. Use the 'advances per pay period' input to see your real annual cost.

Question 6

What's a 'safe' APR-equivalent for EWA?

Accepted Answer

No EWA is cheap in APR terms — but anything under ~150% on a single advance is competitive with the market and dramatically cheaper than payday loans (391%+) or overdraft fees (often 1,000%+ on small shortfalls). Over 200% APR on a recurring basis is a red flag — you're paying premium pricing for what's supposed to be a paycheck-timing fix. Switch apps, find an employer-integrated option (DailyPay, Payactiv — almost always free or near-free), or address the budget gap.

Question 7

Are the comparison APRs in this calculator accurate?

Accepted Answer

Yes, sourced from the CFPB and primary lender disclosures. Payday loan APR (391%) is the CFPB Paycheck Advance Data Spotlight 2024 benchmark — typical $15 per $100 borrowed on a 14-day term. Credit card cash advance APR (26%) is the May 2026 industry average across major issuers; the $10 minimum cash advance fee is standard. Overdraft fee ($35) is the Bankrate 2024 fee survey median. All comparisons assume the same dollar amount as your EWA advance.

Option	Cost	APR-equiv	vs EWA
Your EWA advance	$4.00	146%	baseline
Payday loan ($15 per $100, 14d term)	$15.00	391%	3.8× more
Credit card cash advance (26% APR + 5% fee)	$10.71	391%	2.7× more
Overdraft fee ($35 flat)	$35.00	1,277%	8.8× more

EWA True-Cost Calculator

Why this calculator exists

1. Your advance details

2. The real cost of this advance

3. How this advance compares to alternatives

4. Annual cost if you use it this often

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Methodology

Frequently asked questions