Home » All Calculators » Budgeting Tools » Pawn Shop Loan Calculator

Pawn Shop Loan Calculator

Photo of author
Published on

When you’re in need of quick cash, a pawn shop loan might seem like a convenient option. Essentially, this type of loan involves handing over an item of value to a pawn shop in exchange for a sum of money, with the agreement to repay the loan plus interest and fees within a certain period. However, understanding the exact cost of such a loan can be tricky due to varying interest rates and additional fees. That’s where a pawn shop loan calculator comes in handy. This tool helps borrowers calculate the total amount they’ll need to repay, making the borrowing process transparent and straightforward.

The Purpose and Functionality of the Pawn Shop Loan Calculator

A pawn shop loan calculator is designed to provide clear insights into the specifics of a pawn shop loan, including how much it will ultimately cost to reclaim your pawned item. It takes into account the following components:

  1. Loan Amount (Principal): The sum lent by the pawn shop, typically a percentage of the item’s resale value.
  2. Interest Rate: The cost of borrowing, expressed as a monthly percentage.
  3. Loan Term: The duration over which the loan must be repaid.
  4. Additional Fees: Any extra charges imposed by the pawn shop, such as storage or insurance fees.

Total Repayment=Loan Amount+(Loan Amount×Monthly Interest Rate×Loan Term)+Additional FeesTotal Repayment=Loan Amount+(Loan Amount×Monthly Interest Rate×Loan Term)+Additional Fees


A Pawn Shop Loan Calculator is used to determine how much you’ll have to pay back for a loan you take by pawning an item. The formula to calculate the repayment amount in simple terms is as follows:

  1. Loan Amount: This is the initial amount of money you receive from the pawn shop for your item.
  2. Interest Rate: Pawn shops charge a monthly interest rate. This rate varies by shop and location.
  3. Loan Term: This is the duration for which you’re taking the loan, usually in months.
  4. Fees: Pawn shops may also charge additional fees for storage, insurance, or processing.

The formula to calculate the total amount you need to pay back is:

Total Repayment Amount = Loan Amount + (Loan Amount * Interest Rate * Loan Term) + Fees

In simple words:

  • Start with the amount of money the pawn shop gives you.
  • Calculate the interest you need to pay. Do this by multiplying the loan amount with the interest rate and the number of months you’re borrowing for.
  • Add any extra fees the pawn shop charges.
  • Add all these together, and you get the total amount you have to pay back.

Let’s break it down with an example:

  • If you get a loan of $100,
  • at an interest rate of 5% per month,
  • for a term of 2 months,
  • and there’s a $10 fee,

The interest you’ll owe is $100 * 5% * 2 = $10.

So, the total repayment amount would be $100 (loan amount) + $10 (interest) + $10 (fees) = $120.

Step-by-Step Examples

Let’s go through an example to see how the calculator works in practice:

  • Loan Amount: $1000
  • Monthly Interest Rate: 5%
  • Loan Term: 3 months
  • Additional Fees: $30

Using our formula:

Total Repayment=1000+(1000×0.05×3)+30=1000+150+30=$1180Total Repayment=1000+(1000×0.05×3)+30=1000+150+30=$1180

Therefore, to reclaim your item, you’d need to pay back $1180 at the end of the loan term.

Relevant Information Table

ComponentDescriptionExample Values
Loan AmountAmount lent based on item’s value$1000
Monthly Interest RateCost of borrowing per month5%
Loan TermDuration to repay the loan3 months
Additional FeesExtra charges like storage or insurance fees$30
Total RepaymentThe total amount to be repaid to reclaim the pawned item$1180


The pawn shop loan calculator is an invaluable tool for anyone considering a pawn loan. It offers a clear, upfront understanding of the financial commitment involved, allowing borrowers to make informed decisions. By breaking down the total repayment amount into its constituent parts, the calculator demystifies the often opaque pricing structure of pawn loans. Whether you’re temporarily short on cash or need a quick loan without the hassle of credit checks, this calculator ensures that you’re fully aware of the cost, helping you avoid any unwelcome surprises.

Leave a Comment