About the Title Loan Calculator
This title loan calculator reveals what a car title loan really costs. Title lenders usually quote a monthly fee — commonly 25% of the amount borrowed for 30 days — which sounds manageable but annualizes to an APR of about 300%. Enter the loan amount, the monthly rate and term, any processing or lien fee, and how many times you might roll the loan over, and the calculator shows the APR, the finance charge and how much you would repay in total.
Some lenders now offer installment title loans that are repaid over several months instead of in one lump sum. Switch the loan type to see the monthly payment, total interest and the effective APR once upfront fees are included. Adding your car’s value shows the loan-to-value ratio — a reminder that the vehicle is at risk if you fall behind.
Upfront fees are treated as prepaid finance charges deducted from the cash you receive, the way Truth in Lending disclosures handle them, so the APR here reflects the money you actually get. State laws cap or ban title loans in many places; always compare the APR with the disclosure your lender is required to give you.
With the default inputs, the true apr (incl. fees) is 304.17%. Change any value above to recalculate instantly.
How to use the title loan calculator
- 1Choose a single-payment or installment title loan.
- 2Enter the amount you plan to borrow and any upfront fees.
- 3Enter the monthly fee rate and term, or the stated APR and number of payments.
- 4Add rollovers to see what happens if you can’t repay on time.
- 5Enter your car’s value to see how much of it is on the line.
Formula and method
A single-payment title loan charges a flat fee for the term — typically a percentage of the loan per 30 days. The APR annualizes that fee plus any upfront charges, measured against the cash you actually receive (the amount financed), and scales by 365 ÷ term in days. Each rollover repeats the fee on the same principal, so total cost grows by one fee per renewal.
An installment title loan is amortized like any other loan: the monthly payment comes from the standard formula using the lender’s stated rate. When fees are deducted upfront, the true APR is the monthly rate j that makes the payments’ present value equal the amount financed, multiplied by 12 — the same actuarial method used for Truth in Lending disclosures.
- A
- Amount borrowed (loan principal)
- r
- Monthly fee rate (25% = 0.25)
- d
- Term in days
- F
- Upfront fees deducted from the proceeds
- M
- Monthly installment
- i
- Stated monthly interest rate (APR ÷ 12)
Worked examples
$1,000 for 30 days at 25% a month
The fee is 25% of $1,000 = $250, so $1,250 is due in 30 days. $250 ÷ $1,000 is 25% per 30 days; multiplying by 365 ÷ 30 gives an APR of about 304%.
The same loan rolled over three times
Each renewal costs another $250 without paying down the $1,000. After the original term and three rollovers you have paid $1,000 in fees — as much as you borrowed — and repay $2,000 in total.
Installment title loan: $2,000 at 120% APR for 12 months with a $50 fee
At 10% a month, 12 payments of $293.53 repay a $2,000 loan, costing $1,522.32 in interest. With the $50 fee taken out you receive $1,950, which raises the true APR to about 126%.
Frequently asked questions
How is title loan interest calculated?+
Most single-payment title loans charge a flat monthly fee, often 25% of the amount borrowed per 30 days. On a $1,000 loan that is $250 a month, which equals an APR of roughly 300%. Installment title loans charge interest on the declining balance at a stated APR.
What happens if I can’t repay a title loan?+
You can usually roll the loan over by paying the fee, but the principal stays the same and fees keep adding up. If you stop paying, the lender can repossess the car. CFPB research on single-payment title loans (2016) found that about one in five loan sequences ended with the car being repossessed.
How much can I borrow with a car title loan?+
Lenders typically lend about 25% to 50% of the car’s value, and you generally need to own the car outright (or nearly) with the title in your name. State laws may also cap the maximum loan amount.
Are title loans legal in every state?+
No. Only some states allow single-payment or installment title loans; many others ban them or cap interest rates at levels that make them unavailable. Military members and their dependents are protected by the Military Lending Act’s 36% cap.
What are cheaper alternatives to a title loan?+
Consider a federal credit union payday alternative loan (PAL, interest capped at 28% plus an application fee of no more than $20), a small personal loan, a payment plan with the creditor you owe, help from local assistance programs, or a credit card cash advance — all usually far cheaper than a 300% APR title loan.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.