The Car Title Loan Calculator lets you calculate the interest, fees, and payments for any car title loan. FTL Title Loans is a proponent of cost transparency, something that many lenders do not provide. To help title loan customers determine the real costs of a car title loan we developed two car title loan calculators.
The first car title loan calculator is for loans with monthly payments, also called monthly term loans. The type of title loan depends on the state you live in. Some states have single payment loans, others monthly term loans. It is also possible to get an auto equity loan with monthly payments in a state that has single payment loans.
The second calculates the cost, interest rate, and payment schedule for single payment title loans. This is useful for residents of states that require single payment title loans.
Car Title Loan Calculator Instructions
First, you will need the interest rate that the title lender charges. This is sometimes difficult to find; not many lenders advertise their interest rates. Next, you will need your loan amount, and any lien fees associated with the loan (if they are to be added to your loan, this is true for most title loans).
For single payment loans sometimes lenders charge a fixed fee. Finally you will need the length of the loan in months. The Car Title Loan Calculator processes this information and provides you with both a summary of costs with an estimated payment schedule.
Monthly Term Loan Car Title Loan Calculator
The monthly term loan car title loan calculator provides the results instantly, showing you your payment schedule for the loan information you entered. Typically when you get a title loan the lender will record their lien on their title.
This calculator is for loans with equal monthly payments. Most online car title loans are structured with monthly payments.
The fee associated with this is usually added to the principal loan amount. While it is usually a small amount; it does have an affect on the total loan payments and estimate. This is one of the typical additional costs for car title loans.
The above shows your payment and approximate due date for a single payment title loan. This does not represent the cost of any “rollovers”.
Rolling over a single payment title loan can quickly add up to excessive costs. Only proceed with a title loan if you are sure you can repay the loan in full by the due date.
Car Title Loan Calculator Benefits
Using the car title loan calculator helps provide insight into what title loans cost to help make an informed decision. All you need to get an accurate single payment title loan estimate is the interest rate.
Most title lenders quote their interest rates in monthly terms, so the title loan calculator is set up to input the monthly rate. It is important to understand the difference between the monthly rate and APR.
Monthly Interest Rates versus Annual Percentage Rates (APR)
Most loans use the more common APR to communicate the interest rate to the borrower. Car Title Loans, however, usually advertise the Monthly interest rate. There are a few reasons for this. When title loans began, most were for a single month, so the monthly rate made sense.
It was easier to calculate the loan using the monthly rate. For example, borrowing $1,000 for 1 month at 10% per month, resulting in interest of 10% of $1,000; or simply $100. Since then car title loans have increasing moved to monthly term loans, but have primarily kept the monthly interest rate.
The other reason is optics. 25% doesn’t sound like an extraordinarily high rate. 25% APR is much different than 25% per month (300% APR).
Comparing Monthly Rates and APR:
When comparing loans it is important to compare the same interest rate term. For example you need to compare monthly to monthly and APR to APR. Luckily, it is very easy to convert monthly to APR and vise versa.
To convert the title loan APR to monthly rate simply divide the rate by 12. For example, 120% APR is 10% Monthly Rate (120 / 12). To convert the monthly rate to APR simply multiply by 12. For example, 15% per month is 180% APR (15 * 12).
Which Calculator should I use?
As mentioned, the type of car title loan will depend on the state you live in. This map shows where title loans are permitted, and the following pages provide details on the length of loans in each state.
Use the Car Title Loan Calculator to find the Best Title Loan Company
An obvious use for the title loan calculator is to find the best title loan company with the best rates. They should be able to provide a loan amount that meets your needs with a monthly payment you can afford. Finding an affordable title loan is key to making sure a title loan is a solution that fits your needs. If you are unsure about being able to afford the payments, look for an alternative.
Online Title Loans
The calculator works the same for online title loans as for in person title loans. The process for calculating costs and estimates is the same. Use the title loan calculator to find out how much an online title loan will cost.