Loan-to-value on a pawn loan
A pawn shop lends a share of what your item is worth, and that share is the loan-to-value. A $500 loan against gold worth about $1,167 is an LTV of about 43%. The lower it is, the larger the gap between the loan and the value of the gold you leave as security.
There is no single figure that every shop uses, so you enter the limit from the offer you were given. The calculator can also measure the LTV on the loan plus the interest due at the end of the term, in case you want to see the amount you will repay against the value.
The value comes from the gold's net weight, its karat and the price per gram. Enter the weight of stones separately, since they are not valued as gold. A pawn shop uses its own price, so treat the result as a guide.
Worked example
A 20 g 14 karat bracelet, with gold at $100 a gram for 24 karat, is worth $1,166.67. A loan of $500 against it is an LTV of 42.86%. With a 50% limit the most the gold supports is $583.33, leaving $83.33 of room, and the gold price could fall by 14.29% before you reached the limit.
A loan of $700 against the same gold is an LTV of 60.00%, which is $116.67 over a 50% limit.
To estimate the most a pawn shop might lend, use the pawn shop gold loan amount calculator.
Before you pawn your gold
Ask the shop for the loan, the finance charge, the date you must come back by and what happens to your gold if you do not. Pawn loans are mainly regulated by individual states, so the terms differ. This calculator does not apply any state rule.
To see what you would pay to reclaim your gold, use the pawn shop single payment loan calculator.
Inputs for the pawn shop loan to value calculator
Weight of your gold items
The total weight in grams, including any stones. A troy ounce is 31.1035 g.
Weight of stones and other non-gold parts
Stones and fittings are not valued as gold. Enter 0 if there are none.
Purity (karat)
The karat stamp on the item. 10 and 14 karat are common for US jewelry.
Gold price is quoted for
Choose 24 or 22 karat to match your price, and the calculator converts it.
Gold price per gram
Today's price per gram for that purity. The price shown is only an example.
Amount lent
The loan you have been offered against the gold.
Lender's loan-to-value limit
The most the shop lends as a share of the value. Use the figure in your offer.
Loan-to-value is measured on
Choose the loan alone, or the loan plus interest due at the end.
Interest rate (a year)
Pawn rates are often monthly, so multiply by 12. It is only used when interest is counted.
Term
The months until you reclaim the item. It is only used when interest is counted.
CALCULATOR QUESTIONS
Pawn shop loan to value calculator questions
What loan-to-value do pawn shops use?
It varies by shop and item. Ask for the share in your offer and enter it here.
What happens if the gold price falls after I pawn my gold?
Your item is worth less than when you pawned it. Check your pawn ticket and state rules for what the shop may do.
Is interest included in the loan-to-value?
That depends on the shop. You can measure it on the loan alone or on the loan plus interest due.
Does the calculator use state rules?
No. Pawn rules differ by state, so the limit is a number you enter from your offer.