| Loan Amount | £200.00 |
| Start Date | 17/08/2026 |
| Duration | 3 months |
| Finish Date | 17/11/2026 |
| Total Days | 92 days |
| Monthly Rate | 10% |
| Total Interest | £60.00 |
| Total Repayment | £260.00 |
| APR | 185.61% |
Step 1: Monthly interest amount
£200.00 × 10% = £20.00 per month
Step 2: Duration in months
3 months
Step 3: Total interest
£20.00 × 3 months = £60.00
Step 4: Total repayment
£200.00 + £60.00 = £260.00
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)
£60.00 ÷ £200.00 = 0.30000000
Step 2: 1 + C/P
1 + 0.30000000 = 1.30000000
Step 3: t (Duration in years)
3 months ÷ 12 = 0.25000000 years
Step 4: 1/t
1 ÷ 0.25000000 = 4.00000000
Step 5: (1 + C/P)1/t
1.300000004.00000000 = 2.85610000
Step 6: APR
100 × (2.85610000 − 1) = 185.61%