A pawn loan is secured by an item left with the pawnbroker, priced as a flat monthly rate rather than an annualized APR, and never affects credit since it’s non-recourse.
How it works
Principal times the monthly rate times months held gives the interest cost; adding any flat service or storage fee gives the total cost, and adding that to the principal gives the total amount needed to redeem the item.
What this does not include
This does not include what happens if the loan isn’t repaid — the pawnbroker simply keeps and can sell the item, with no collection action, credit reporting, or remaining debt obligation for the borrower.
How to use this calculator
- Enter the loan amount, monthly rate, months held, and any flat fee.
Frequently asked questions
How is a pawn loan different from a title loan?
A pawn loan is secured by a physical item held by the pawnbroker and is non-recourse; a title loan is secured by a vehicle’s title (the borrower keeps driving it) and can involve repossession and additional collection consequences if unpaid.
Do pawn loan rates vary a lot by state?
Yes — pawn lending is regulated state by state, with maximum monthly rates and fee structures varying meaningfully across states.
Can the loan be extended instead of redeemed?
Many pawnbrokers allow paying just the interest to extend the loan term, keeping the item pawned longer rather than redeeming it in full immediately.
