| Loan Amount | £10,000.00 |
| Start Date | 09/02/2026 |
| Duration | 6 months |
| Finish Date | 08/08/2026 |
| Total Days | 180 days (1 day reduced) |
| Monthly Rate | 7% |
| Total Interest | £4,176.80 |
| Total Repayment | £14,176.80 |
| APR | 101.76% |
Step 1: Monthly interest amount
£10,000.00 × 7% = £700.00 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£700.00 × 5.97 months = £4,176.80
Step 4: Total repayment
£10,000.00 + £4,176.80 = £14,176.80
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)
£4,176.80 ÷ £10,000.00 = 0.41768000
Step 2: 1 + C/P
1 + 0.41768000 = 1.41768000
Step 3: t (Duration in years)
5.97 months ÷ 12 = 0.49723810 years
Step 4: 1/t
1 ÷ 0.49723810 = 2.01110898
Step 5: (1 + C/P)1/t
1.417680002.01110898 = 2.01762432
Step 6: APR
100 × (2.01762432 − 1) = 101.76%