| Loan Amount | £200.00 |
| Start Date | 12/02/2026 |
| Duration | 6 months |
| Finish Date | 11/08/2026 |
| Total Days | 180 days (1 day reduced) |
| Monthly Rate | 8.5% |
| Total Interest | £101.44 |
| Total Repayment | £301.44 |
| APR | 128.20% |
Step 1: Monthly interest amount
£200.00 × 8.5% = £17.00 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£17.00 × 5.97 months = £101.44
Step 4: Total repayment
£200.00 + £101.44 = £301.44
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)
£101.44 ÷ £200.00 = 0.50720000
Step 2: 1 + C/P
1 + 0.50720000 = 1.50720000
Step 3: t (Duration in years)
5.97 months ÷ 12 = 0.49725490 years
Step 4: 1/t
1 ÷ 0.49725490 = 2.01104101
Step 5: (1 + C/P)1/t
1.507200002.01104101 = 2.28196489
Step 6: APR
100 × (2.28196489 − 1) = 128.20%