| Loan Amount | £5,000.00 |
| Start Date | 28/09/2026 |
| Duration | 6 months |
| Finish Date | 28/03/2027 |
| Total Days | 181 days |
| Monthly Rate | 8% |
| Total Interest | £2,400.00 |
| Total Repayment | £7,400.00 |
| APR | 119.04% |
Step 1: Monthly interest amount
£5,000.00 × 8% = £400.00 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£400.00 × 6 months = £2,400.00
Step 4: Total repayment
£5,000.00 + £2,400.00 = £7,400.00
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)
£2,400.00 ÷ £5,000.00 = 0.48000000
Step 2: 1 + C/P
1 + 0.48000000 = 1.48000000
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
1.480000002.00000000 = 2.19040000
Step 6: APR
100 × (2.19040000 − 1) = 119.04%