| Loan Amount | £12,000.00 |
| Start Date | 02/06/2025 |
| Duration | 9 months |
| Finish Date | 02/03/2026 |
| Total Days | 273 days |
| Monthly Rate | 2% |
| Total Interest | £2,160.00 |
| Total Repayment | £14,160.00 |
| APR | 24.69% |
Step 1: Monthly interest amount
£12,000.00 × 2% = £240.00 per month
Step 2: Duration in months
9 months
Step 3: Total interest
£240.00 × 9 months = £2,160.00
Step 4: Total repayment
£12,000.00 + £2,160.00 = £14,160.00
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)
£2,160.00 ÷ £12,000.00 = 0.18000000
Step 2: 1 + C/P
1 + 0.18000000 = 1.18000000
Step 3: t (Duration in years)
9 months ÷ 12 = 0.75000000 years
Step 4: 1/t
1 ÷ 0.75000000 = 1.33333333
Step 5: (1 + C/P)1/t
1.180000001.33333333 = 1.24693173
Step 6: APR
100 × (1.24693173 − 1) = 24.69%