Gold loan interest calculator

Work out the interest on a gold or pawn loan. Enter the amount, the rate and the period. Simple interest, no signup.

How the interest is worked out

This calculator uses simple interest, which is how most pawn brokers and gold loan shops quote their rates: interest = loan amount × rate × time.

If your rate is quoted per month, such as ₹2 for every ₹100 a month, the rate is 2% per month. For 6 months on ₹50,000 that is 50,000 × 2% × 6 = ₹6,000.

If your rate is quoted per year, the calculator converts the period to years. Days are counted as 1/30 of a month.

Some shops charge compound interest, or take interest in advance. The result here is a guide. 2Dot Loan Manager supports simple and compound interest, prepaid or postpaid, and works out the closing amount for each pledge.

Pawn broker software · 2Dot Loan Manager

Frequently asked questions

How is gold loan interest calculated?

Most gold loan and pawn shops use simple interest: loan amount × rate × time. For example, 50,000 at 2% a month for 6 months is 6,000 interest.

What does ₹2 interest mean on a pawn loan?

It usually means ₹2 per ₹100 per month, which is 2% a month or 24% a year.

How do I convert a monthly rate to a yearly rate?

Multiply the monthly rate by 12. A rate of 1.5% a month is 18% a year.

Can this calculator handle compound interest?

No. It shows simple interest. 2Dot Loan Manager supports compound interest and interest paid in advance for each pledge.

Is there software that does this for every pledge?

Yes. 2Dot Loan Manager works out interest, pending interest and the closing amount for every pledge, in Tamil and English.

Contact 2Dot Solutions in Karaikal