Authoritative Data Source & Methodology
AuthoritativeDataSource:
- Consumer Financial Protection Bureau (CFPB) — One-in-five single-payment auto title borrowers face repossession (2016).
- Federal Trade Commission (FTC) — What to know about payday & car title loans (typical monthly fees ≈ 25% → ~300% APR).
- Standard amortization payment identity \( A = P \cdot \dfrac{i(1+i)^n}{(1+i)^n-1} \).
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Amortized payment (monthly/weekly/biweekly):
Let \(P\) = principal (including any financed fees), \(APR\) as a decimal, \(m\) = payments per year, \(i = \frac{APR}{m}\), and \(n\) = total number of payments.
\\[ A = P \cdot \frac{i(1+i)^{n}}{(1+i)^{n}-1} \\]
Interest each period: \\( \text{Int}_t = B_{t-1}\cdot i \\), Principal: \\( \text{Prin}_t = A - \text{Int}_t \\), Balance update: \\( B_t = B_{t-1} - \text{Prin}_t \\).
Single-payment (balloon) over \(T\) years:
Total interest: \\( I = P \cdot APR \cdot T \\). Balloon payoff: \\( A_{\text{balloon}} = P + I \\).
Optional monthly finance fee \(f\%\) adds \\( P\cdot \frac{f}{100} \\) per month to the cost.
Glossary of Inputs & Outputs
- Loan Amount (P): Cash borrowed; financed fees may be added to principal.
- APR: Annual Percentage Rate, used to compute periodic rate \(i\).
- Term Length & Units: Duration of the loan (days/months/years).
- Payment Structure: Amortized monthly payments or single balloon at end.
- Payment Frequency: Number of payments per year (12, 26, 52) for amortized mode.
- Monthly Finance Fee: Extra charge per month as a % of principal.
- Payment per Period: Amount due each payment (or balloon).
- Total Interest & Total Cost: Sum of interest (plus fees, if any) and overall payback.
How It Works: A Step-by-Step Example
Scenario: \(P = \$1{,}500\), APR = 240%, Term = 30 days (single-payment), lien fee = \$40, origination fee = \$25, monthly finance fee = 0%.
- Financed principal \(P' = 1500 + 40 + 25 = \$1{,}565\).
- Time in years \(T = 30/365 \approx 0.08219\).
- Total interest \(I = P' \cdot APR \cdot T = 1565 \times 2.40 \times 0.08219 \approx \$308.31\).
- Balloon payoff \(A_\text{balloon} = P' + I \approx \$1{,}873.31\).
In amortized mode, the calculator uses the standard payment formula to spread repayment over multiple periods.
FAQs
Do title loans compound interest?
Practices vary. This tool assumes APR-based periodic interest for amortized mode and simple interest for single-payment loans.
What if my lender quotes only a monthly fee (e.g., 25%)?
Enter your APR and also add the fee in “Monthly Finance Fee (%)” to approximate total costs.
Why is my total cost so high?
Short terms and high APRs significantly increase cost; including financed fees raises principal and interest further.
Can I export the schedule?
Use your browser’s print to save as PDF; the schedule area is formatted for printing.
What are safer alternatives?
Consider a credit-union personal loan, payment plan with creditors, or local assistance programs. Compare APRs carefully.
Strumento sviluppato da Ugo Candido. Contenuti verificati da CalcDomain Editorial Board.
Ultima revisione per l'accuratezza in data: