## Car Title Loans for All Applicants

You realize that you need a car title loan and you recognize its flexibility and above all its availability. Obviously, everything comes with a price and everyone has a right to know what things will cost – so here is a very simple car title loan calculator to work out what your auto title loan is going to cost you.

A reputable company will have no problems in telling you what the interest rate will be – which is what you are charged on the entire loan. There is a different calculation which is the APR which stands for Annual Percentage Rate. This will be very slightly higher than the interest rate as such because the former is the interest on the entire loan whereas the effective APR includes interest on the unpaid balance and any other charges that a borrower may make.

**So How Do You Calculate?**

You can calculate the effective APR based on the quoted interest rate. The effective APR equation is written: (1 + rate / periods)^periods – 1. This all means that the “rate” refers to the interest rate and “periods” refers to the number of months in the year when the loan is compounding. Since it compounds every month, the number is 12. In the example, the equation would then come out as (1 + .05 / 12)^12 – 1 which works out at 5.116. That means that the effective APR of the auto loan would be 5.116 percent, which is higher than the quoted interest rate of 5 percent.