Comprehensive Guide
Learn more in our Loans & Mortgage Guide.
How it works
A title loan cost calculator totals what a car-title loan genuinely charges once the fee structure and rollover reality are counted. Title lending prices in fees rather than rates: borrowing $800 commonly costs 25% of the principal per month - $200 - due in a lump after thirty days alongside the entire principal. Quoted as an annual rate, that fee equals 300% APR, and the lump-sum design is what makes the number stick: few borrowers can produce a thousand dollars in thirty days, so the loan rolls over, the fee repeats, and months later the borrower has paid multiples of the original advance without reducing the principal by a cent. Three kept months on that $800 loan means $600 of fees against $800 borrowed - a 75% surcharge for short-term liquidity, secured by the borrower's own car, which a default places directly at risk of repossession plus storage and auction fees. Federal regulators have found roughly one in five title loans ends with the vehicle seized. The calculator converts any quoted fee into its monthly cost, total repayment and equivalent APR so the number can be compared honestly against alternatives such as credit union payday-alternative loans, which federal rules cap near 28% APR.Formula
Total repayment = principal + (principal x monthly fee %) x months | Equivalent APR = monthly fee % x 12
Tips
- Convert any title-lender quote to APR before signing - fees hide triple-digit rates.
- A rollover resets the fee without touching what you owe; it is rent on debt, not progress.
- Remember what secures the loan: default risks the car, not just the balance.
- Credit union PALs, employer advances and hardship plans bridge gaps near legally.
- Already in one? Ask the lender about a principal-reducing extension before rolling again.
Frequently asked questions
How much does a title loan really cost?
Typically 25% of the principal per month - $200 on an $800 loan - repaid as a lump after 30 days. Kept three months through rollovers, fees reach $600 on $800 borrowed. The calculator above converts any quote into totals and an APR for honest comparison.
What is the APR on a title loan?
A common 25% monthly fee equates to 300% APR, among the highest consumer rates outside payday lending. Some states cap title-loan rates; others allow effective rates far higher once compounding and fees stack through repeated rollovers.
Can you lose your car with a title loan?
Yes - the vehicle is the collateral, and CFPB analysis has found roughly one in five title loans ends in repossession. Borrowers also owe towing, storage and auction fees on top of the balance, and often lose transportation to work in the process.
What happens if I can't pay off my title loan?
Most borrowers roll the loan over, paying another month's fee while the principal stands still - the designed outcome. Repeated rollovers can exceed the original loan several times over; default triggers repossession and sale, with surplus rarely returned promptly.
What are cheaper alternatives to a title loan?
Federal credit union payday-alternative loans cap near 28% APR; employer wage advances, local assistance programs, creditor hardship plans and even a cash advance on a credit card at 29% all undercut title pricing - and none put your car at risk.