If you’re planning on taking your valuables to a pawn shop today to get a quick cash loan, you’re probably wondering how to determine pawn shop value. Pawn shops calculate value in a few different ways depending on the type of item you have to leave as collateral and what you plan on doing with your item.

You could either pawn or sell your item. The advantage of a pawn loan is that you get to keep your item for future use. And the advantage of selling to a pawn shop is that you’ll get slightly more than your pawn loan offer and you get cash on the spot in a safe environment, with a receipt.

The two most common type of items that people bring to a pawn shop are Jewelry and Electronics


How to determine pawn shop value

How to determine pawn shop value | Jewelry

The pawn shop value of jewelry is calculated by first determining the composition of the metal your jewelry is made of. The item is weighed. And a portion of the item’s wholesale value is offered to you.


The pawn broker will first check to see the percentage of gold within your piece (karat). Your jewelry could range from 10-22kt gold. Each karat is essentially a percentage of gold purity. 10kt is 416-417, in other words, about 41% pure gold. Here is a rough formula:


(Price of pure metal on the market x karat x .80) = pawn value


With this formula a pawn broker would pay you 80% of the gold’s current market value. Keep in mind that they cannot lend or offer the entire value of an item because pawn shops need to make a profit. However, pawn brokers realize that you want your jewelry back. Because of this, a pawn shop will go above and beyond to make sure they write you a loan against your jewelry.

Do diamonds increase pawn value?

If your jewelry has diamonds, like most engagement rings, pawn shops will pay or loan you the value of the diamond(s) too. If you include a certificate of authenticity, it legitimizes the jewelry item and makes it easier for a pawn broker to gauge the overall value of the piece after testing.

Designer pieces of jewelry could pay you more!

Designer or name brand pieces can get you more cash at a pawn shop, but only if that brand name causes something to sell for more than just the price of the materials. A pawn shop will still check what the item sells for now and offer a portion of that, plain and simple. In other words, yes a pawn shop can pay you more for a designer piece of jewelry, but only because it sells for more. Resale value is king!
How to determine pawn shop value

How to determine pawn shop value | Electronics

The pawn shop value of electronics is calculated by first evaluating the condition of the item.

Mainly a pawn broker asks himself.. does it work? and how does it look?

As you can imagine, an item that can’t be used will probably not sell easily. And if you don’t pay back your pawn loan, a pawn shop needs to sell it to regain the loan that was given out with operation costs. Additionally, a good looking item will help increase the ease of selling the merchandise if necessary later. Clean it and bring original accessories.


Second, a pawn broker is likely to search your item’s resale value online. As you know, on eBay you can get a good idea of what to sell something for. And pawn shops frequently use online selling avenues to sell the merchandise that people don’t return for after the pawn loan matures. It’s probably a good idea to search online yourself.


To figure out pawn value, take the used selling price of an electronic and multiply it by 30 or 40%. Remember pawn shops like to negotiate, it’s what they do. The percentage a pawn shop pays for electronics is roughly 30-40% but can be higher depending on demand.


When a pawn loan is written, the pawn broker also considers the length of the loan to try and gauge how fast your item will depreciate. Most electronics depreciate causing its resale value to fall over time. Like with jewelry, the resale value of electronics is the most important thing to determine the pawn value of electronics. And again, high-end and brand name electronics can get you more at a pawn shop, but only because they sell for more. Resale value is king!


A pawn broker will still have to evaluate your item in person no matter what information you find online, so the best thing to do is be prepared to negotiate fast and know how to determine pawn shop value fast. Know where to start instantly with’s pawn loan calculator.

I hope this quick guide helps clear some things up if you’re considering getting pawn loan today or just want to learn more about how pawn shops determine pawn shop value. Use this information to be better poised next time you walk in to a pawn shop to ask for a loan. If you liked this article help us spread the word by sharing/liking one of your pages and our free calculators with your friends and family.

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