| Loan Amount | £1,000.00 |
| Start Date | 10/03/2026 |
| Duration | 6 months |
| Finish Date | 09/09/2026 |
| Total Days | 183 days (1 day reduced) |
| Monthly Rate | 8% |
| Total Interest | £477.39 |
| Total Repayment | £1,477.39 |
| APR | 119.20% |
Step 1: Monthly interest amount
£1,000.00 × 8% = £80.00 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£80.00 × 5.97 months = £477.39
Step 4: Total repayment
£1,000.00 + £477.39 = £1,477.39
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)
£477.39 ÷ £1,000.00 = 0.47739000
Step 2: 1 + C/P
1 + 0.47739000 = 1.47739000
Step 3: t (Duration in years)
5.97 months ÷ 12 = 0.49728125 years
Step 4: 1/t
1 ÷ 0.49728125 = 2.01093446
Step 5: (1 + C/P)1/t
1.477390002.01093446 = 2.19201563
Step 6: APR
100 × (2.19201563 − 1) = 119.20%