About the Pawn Loan Calculator
This pawn loan calculator shows the full cost of borrowing against jewelry, electronics, tools or other valuables at a pawn shop. Enter the amount the shop lends you, the monthly finance charge it quotes, any monthly storage or service fee and any one-time setup fee, then choose how many months you expect to keep the loan open. You get the amount you must pay to redeem your item, the total charges and the annual percentage rate (APR) those charges represent.
Pawn loans need no credit check because the item itself is the collateral: if you do not repay or renew, the shop keeps it and the debt is settled. That makes them simple, but monthly charges of 10%–25% of the loan add up quickly. A $300 loan at 15% a month costs $45 for every month you keep it open — an APR of 180%. Entering the value of the item also shows your loan-to-value ratio, which tells you how much of its worth you would give up by forfeiting it.
The calculator assumes charges are billed per full month (as most pawn tickets are) and that you redeem by paying the principal plus all charges at the end. Pawn fees and maximum rates are set by state or local law, so the rates on your pawn ticket take precedence.
With the default inputs, the total to redeem your item is $435.00. Change any value above to recalculate instantly.
How to use the pawn loan calculator
- 1Enter the amount the pawn shop offers to lend you.
- 2Enter the monthly finance charge from the pawn ticket.
- 3Add any monthly storage or service fee and any one-time setup fee.
- 4Choose how many months you expect to keep the loan before redeeming.
- 5Enter the item’s resale value to see your loan-to-value and what forfeiting would cost.
Formula and method
Pawn shops usually charge a flat finance charge each month as a percentage of the original loan, sometimes with a separate storage, insurance or service fee. Because the charge is based on the original amount and nothing is paid down until you redeem, the cost grows in a straight line with every month the loan is open.
The APR annualizes the total charges: divide them by the loan amount to get the cost for the period you held the loan, then multiply by the number of such periods in a year (12 ÷ months). This simple-interest annualization matches how Truth in Lending APRs are disclosed for single-payment loans. Loan-to-value compares the loan with the item’s resale value.
- L
- Pawn loan amount
- r
- Monthly finance charge rate (e.g. 15% = 0.15)
- F
- Monthly storage / service fee
- S
- One-time setup or ticket fee
- m
- Months until the item is redeemed
Worked examples
$300 loan at 15% a month, redeemed after 3 months
The monthly charge is 15% of $300 = $45. Over three months that is $135, so you pay $435 to get the item back. $135 ÷ $300 is 45% for three months; multiplying by 12 ÷ 3 gives an APR of 180%. The $300 loan is 30% of the $1,000 item.
$500 for one month at 20% plus a $10 storage fee
20% of $500 is $100, plus $10 storage makes $110 for the month, so redeeming costs $610. A 22% charge for one month annualizes to 22% × 12 = 264% APR.
$1,000 at 4% a month with a $25 setup fee, held 6 months
Larger pawn loans often carry lower rates. $40 a month for six months is $240, plus the $25 setup fee makes $265 in charges. That is 26.5% over half a year, or an APR of 53%.
Frequently asked questions
How does pawn shop interest work?+
The shop charges a fixed percentage of the loan for each month (or 30-day period) the loan is open, often with storage or service fees. You pay nothing until you redeem, then you repay the loan plus all accumulated charges to get your item back.
What happens if I can’t repay a pawn loan?+
After the loan term and any grace period required by your state, the pawn shop keeps the item and can sell it. The debt is then settled: it is not sent to collections and does not affect your credit score, but you lose the item.
What is a typical pawn loan APR?+
Monthly charges of 10%–25% are common, which works out to APRs of roughly 120% to 300%. Some states cap pawn rates far lower, and larger loans often get lower rates under tiered state rules.
How much will a pawn shop lend on an item?+
Pawn shops typically lend a fraction of what they could resell the item for — often somewhere around 25% to 60% of resale value — so they can cover their costs if you do not come back for it.
Can I extend or renew a pawn loan?+
Most shops let you renew by paying the charges that have built up, which starts a new term on the same principal. Renewing keeps your item but adds another month of charges each time without reducing the 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.