| Loan Amount | £500.00 |
| Start Date | 20/08/2026 |
| Duration | 6 months |
| Finish Date | 20/02/2027 |
| Total Days | 184 days |
| Monthly Rate | 1.72% |
| Total Interest | £51.60 |
| Total Repayment | £551.60 |
| APR | 21.71% |
Step 1: Monthly interest amount
£500.00 × 1.72% = £8.60 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£8.60 × 6 months = £51.60
Step 4: Total repayment
£500.00 + £51.60 = £551.60
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)
£51.60 ÷ £500.00 = 0.10320000
Step 2: 1 + C/P
1 + 0.10320000 = 1.10320000
Step 3: t (Duration in years)
6 months ÷ 12 = 0.50000000 years
Step 4: 1/t
1 ÷ 0.50000000 = 2.00000000
Step 5: (1 + C/P)1/t
1.103200002.00000000 = 1.21705024
Step 6: APR
100 × (1.21705024 − 1) = 21.71%