Title Loan Calculator
Work out the true cost of a car title loan: the fee for each 30-day term, the APR, what you pay in total if you roll the loan over, and how much of your car’s value is on the line.
How it works
Fee per term = loan × fee % · total fees = fee per term × (rollovers + 1) + one-time fees · APR = (fee per term + one-time fees) ÷ loan × 365 ÷ days · effective annual rate = (1 + fee %)^(365 ÷ days) − 1 · LTV = loan ÷ car value
A car title loan is a short single-payment loan secured by your vehicle’s title. Lenders usually charge a flat finance fee — around 25% of the loan for 30 days according to the US Federal Trade Commission and CFPB — which works out to roughly 300% APR. Most borrowers cannot repay the whole amount at the end of the term, so they pay only the fee and roll the loan over; every rollover adds another full fee while the original debt stays the same, and if you stop paying the lender can repossess the car.
Worked example
Borrowing 1,000 against a car worth 6,000 (16.67% loan-to-value) at a 25% fee for 30 days costs 250 per term, which is 25% × 365 ÷ 30 = 304.17% APR. If you roll it over 3 times and repay in the fourth term, you pay 4 × 250 = 1,000 in fees — 100% of the loan — for a total of 2,000. Renewing all year would be an effective annual rate of about 1,410%.
Sources: FTC — What to know about payday and car title loans · CFPB — Single-payment vehicle title lending
Frequently asked questions
How is the APR of a title loan calculated?
Divide the finance charge by the amount borrowed and annualize it for the term: a 25% fee for 30 days is 25% × 365 ÷ 30 ≈ 304% APR. One-time fees charged at signing push it higher.
What happens when I roll over a title loan?
You pay the fee only and the full principal is renewed for another term with a new fee. Three rollovers of a 1,000 loan at 25% cost 1,000 in fees — as much as the loan itself — and you still owe the 1,000.
How much can I borrow against my car?
Title lenders typically lend 25% to 50% of the car’s value. The loan-to-value result shows how much of your car is pledged; the car itself is the collateral if you default.
Are there cheaper alternatives?
Credit union small-dollar loans, a payment plan with the creditor, a credit card cash advance or an employer advance usually cost far less than a 300% APR loan secured by your car.
Related calculators
Estimates for education and planning, not financial advice. Lenders’ contracts, fees, day-count and rounding rules differ — check the official cost disclosure (APR / TAE / CAT) and your loan agreement before deciding.