| Loan Amount | £1.00 |
| Start Date | 01/01/1111 |
| Duration | 1 weeks |
| End Date | 08/01/1111 |
| Total Days | 7 days |
| Monthly Rate | 25% |
| Total Interest | £0.06 |
| Total Repayment | £1.06 |
| APR | 1,747.93% |
Step 1: Monthly interest amount
£1.00 × 25% = £0.25 per month
Step 2: Duration in months
1 weeks ÷ 52 × 12 = 0.23 months
Step 3: Total interest
£0.25 × 0.23 months = £0.06
Step 4: Total repayment
£1.00 + £0.06 = £1.06
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)
£0.06 ÷ £1.00 = 0.06
Step 2: 1 + C/P
1 + 0.06 = 1.06
Step 3: t (Duration in years)
0.23 months ÷ 12 = 0.0192 years
Step 4: 1/t
1 ÷ 0.0192 = 52
Step 5: (1 + C/P)1/t
1.0652 = 20.696885
Step 6: APR
100 × (20.696885 − 1) = 1,747.93%