| Loan Amount | £5,000.00 |
| Start Date | 08/03/2026 |
| Duration | 6 months |
| End Date | 08/09/2026 |
| Total Days | 184 days |
| Monthly Rate | 7% |
| Total Interest | £2,100.00 |
| Total Repayment | £7,100.00 |
| APR | 101.64% |
Step 1: Monthly interest amount
£5,000.00 × 7% = £350.00 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£350.00 × 6 months = £2,100.00
Step 4: Total repayment
£5,000.00 + £2,100.00 = £7,100.00
APR = 100 × { (1 + C/P)1/t − 1 }
C = Total Interest • P = Loan Amount • t = Duration in Years
Step 1: C / P (Total Interest ÷ Loan Amount)
£2,100.00 ÷ £5,000.00 = 0.42
Step 2: 1 + C/P
1 + 0.42 = 1.42
Step 3: t (Duration in years)
6 months ÷ 12 = 0.5 years
Step 4: 1/t
1 ÷ 0.5 = 2
Step 5: (1 + C/P)1/t
1.422 = 2.0164
Step 6: APR
100 × (2.0164 − 1) = 101.64%