Pawn Interest Calculator Formulas

Definition

Mathematical framework for pawn loan cost calculation.

Variables

• P = Principal (loan amount)
• r = Monthly interest rate (decimal)
• t = Time period (months)
• I = Total interest
• F = Fees (if applicable)

Formula(s)

Simple Interest (Most Common)

I = P × r × t
Total Owed = P + I + F

Example Calculation

P = $500
r = 0.05 (5% per month)
t = 2 months

I = $500 × 0.05 × 2 = $50
Total = $500 + $50 = $550

Related Concepts

• /pawn-basics/what-is-a-pawn-loan
• /pawn-basics/redemption-vs-forfeiture-explained
• /interest-fees-math/how-pawn-interest-is-calculated
• /interest-fees-math/apr-vs-monthly-interest-in-pawn
• /interest-fees-math/fees-vs-interest-whats-the-difference
• /interest-fees-math/examples/100-loan-30-days

Next Steps: - /risk-and-safety/how-to-avoid-bad-pawn-deals

Disclaimer: This content is for educational purposes only and does not constitute legal or financial advice. Pawn loan terms, interest rates, and regulations vary by jurisdiction. This site does not provide pawn services.

Sources: Information based on typical pawn industry practices and consumer finance principles. Verify specific requirements with licensed pawnbrokers in your area.