| Loan Amount | £2,500.00 |
| Start Date | 25/08/2026 |
| Duration | 8 months |
| Finish Date | 25/04/2027 |
| Total Days | 243 days |
| Monthly Rate | 20% |
| Total Interest | £4,000.00 |
| Total Repayment | £6,500.00 |
| APR | 319.24% |
Step 1: Monthly interest amount
£2,500.00 × 20% = £500.00 per month
Step 2: Duration in months
8 months
Step 3: Total interest
£500.00 × 8 months = £4,000.00
Step 4: Total repayment
£2,500.00 + £4,000.00 = £6,500.00
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)
£4,000.00 ÷ £2,500.00 = 1.60000000
Step 2: 1 + C/P
1 + 1.60000000 = 2.60000000
Step 3: t (Duration in years)
8 months ÷ 12 = 0.66666667 years
Step 4: 1/t
1 ÷ 0.66666667 = 1.50000000
Step 5: (1 + C/P)1/t
2.600000001.50000000 = 4.19237403
Step 6: APR
100 × (4.19237403 − 1) = 319.24%