How a title loan is paid off
The CFPB's report on single-payment vehicle title lending says the loans in its data typically have 30-day terms, when the full principal and fees fall due, with APRs around 300%. If you cannot pay on the due date, you can roll the loan over: you pay a fee and the loan is extended another 30 days. The principal is not reduced unless you pay some of it as well.
This calculator charges the fee on what you still owe for each 30-day period. With no part-payments, the total you pay is the amount borrowed plus the fee once for every period, including the last one.
Worked example: one payment, then three rollovers
On $1,000 with a fee of 25% for 30 days, the first fee is $250.00. Paid on the due date, you pay $1,250.00 in a single payment. Multiplying the fee rate by 365 and dividing by 30 gives an APR of 304.17%.
Roll the loan over three times and the rollover fees come to $750.00. You then pay off $1,250.00 on day 120, so the total you pay back is $2,000.00. That is $2.00 for every $1 borrowed. The 25% is an example, not a published rate: enter the fee from your own quote.
Paying part of the principal at each rollover
If you pay some principal with each rollover fee, the next fee is charged on a smaller balance. Paying $200 of principal at each of three rollovers on the $1,000 loan means rollover fees of $600.00, $400.00 of principal left at the final payment and a final payment of $500.00. The total you pay back is $1,700.00.
If a part-payment is as large as what you owe, the loan is paid off at that point. Paying $5,000 toward the $1,000 loan at its first rollover clears it on day 30 for a total of $1,250.00, and no further fee is charged. The calculator shows this as paid off rather than as an error.
Paying off early
Whether paying early saves any fee depends on your agreement and your state, so the calculator lets you choose. If the full fee is still due, paying a $1,000 loan on day 10 costs $1,250.00, the same as on day 30, and the APR rises to 912.50% because the same fee covers fewer days.
If the fee is cut for the unused days, paying on day 10 costs $1,083.33. That saves $166.67 of fee, and the APR stays at 304.17%. Ask your lender in writing which applies before you rely on a refund.
How the APR is worked out
The APR here is a nominal annual rate. For a single payment it is the fee divided by the amount borrowed, times 365, divided by the days. With rollovers or part-payments it is the rate for a 30-day period that makes your payments worth the amount borrowed, times 365 divided by 30. There is no cap on the rate, because title loan rates are often far above 100%.
This is a guide. We have not checked every combination against the Truth in Lending rules, so use the APR stated in your loan agreement when you compare offers.
Why rollovers matter
The CFPB found that over 80 percent of vehicle title loans in its data were reborrowed on the same day a previous loan was repaid. It also found that one in five loan sequences ended with the borrower's vehicle being repossessed. The title generally must be owned free and clear, so a lender can repossess and sell the vehicle if payments are not made on time.
To see how much a vehicle could secure, use the title loan value calculator.
Use the right country page
A title loan is a US product. In the UK the equivalent is a logbook loan, repaid weekly or monthly and settled early under different rules.
For the UK product, open the logbook loan payoff calculator.
Inputs for the title loan payoff calculator
Fee is quoted as
Choose a percentage of the loan or dollars per $100 borrowed. They mean the same fee: $25 per $100 is 25%.
If you pay off early
Whether the full fee is still due when you pay before day 30. This depends on your agreement and state.
Amount borrowed
The cash you receive. The fee is charged on this amount.
Fee for each 30 days
The fee from your quote. The 25% shown is only an example.
Times you roll the loan over
Each rollover pays a fee and starts another 30 days. Enter 0 to pay on the due date.
Principal paid at each rollover
Part of the amount borrowed you pay with each rollover fee. Enter 0 for none.
Day you pay off the last period
The day of the final 30-day period you pay off. 30 means the due date.
CALCULATOR QUESTIONS
US title loan payoff calculator questions
How much does it cost to pay off a title loan?
On $1,000 with a 25% fee for 30 days, you pay $1,250.00 on the due date. Each rollover adds another fee, so three rollovers bring the total to $2,000.00.
What happens if I roll a title loan over?
You pay the fee and the loan is extended another 30 days. The principal stays the same unless you pay some of it too.
Can I pay a title loan off early?
Usually, but whether the fee is reduced depends on your agreement and state. Ask your lender in writing.
Why is the APR on a title loan so high?
A fee of 25% for 30 days works out at an APR of 304.17% when annualized. The CFPB found APRs of around 300% in its data.
Can I lose my vehicle?
Yes. The lender holds your title and can repossess and sell the vehicle if you do not pay on time.