| Loan Amount | £2,500.00 |
| Start Date | 26/08/2026 |
| Duration | 1 months |
| Finish Date | 25/09/2026 |
| Total Days | 30 days (1 day reduced) |
| Monthly Rate | 7% |
| Total Interest | £169.35 |
| Total Repayment | £2,669.35 |
| APR | 125.41% |
Step 1: Monthly interest amount
£2,500.00 × 7% = £175.00 per month
Step 2: Duration in months
1 months
Step 3: Total interest
£175.00 × 0.97 months = £169.35
Step 4: Total repayment
£2,500.00 + £169.35 = £2,669.35
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)
£169.35 ÷ £2,500.00 = 0.06774000
Step 2: 1 + C/P
1 + 0.06774000 = 1.06774000
Step 3: t (Duration in years)
0.97 months ÷ 12 = 0.08064286 years
Step 4: 1/t
1 ÷ 0.08064286 = 12.40035430
Step 5: (1 + C/P)1/t
1.0677400012.40035430 = 2.25414808
Step 6: APR
100 × (2.25414808 − 1) = 125.41%