| Loan Amount | £200.00 |
| Start Date | 05/06/2026 |
| Duration | 2 months |
| Finish Date | 05/08/2026 |
| Total Days | 61 days |
| Monthly Rate | 12% |
| Total Interest | £48.00 |
| Total Repayment | £248.00 |
| APR | 263.52% |
Step 1: Monthly interest amount
£200.00 × 12% = £24.00 per month
Step 2: Duration in months
2 months
Step 3: Total interest
£24.00 × 2 months = £48.00
Step 4: Total repayment
£200.00 + £48.00 = £248.00
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)
£48.00 ÷ £200.00 = 0.24000000
Step 2: 1 + C/P
1 + 0.24000000 = 1.24000000
Step 3: t (Duration in years)
2 months ÷ 12 = 0.16666667 years
Step 4: 1/t
1 ÷ 0.16666667 = 6.00000000
Step 5: (1 + C/P)1/t
1.240000006.00000000 = 3.63521508
Step 6: APR
100 × (3.63521508 − 1) = 263.52%