| Loan Amount | £240.00 |
| Start Date | 31/03/2026 |
| Duration | 6 months |
| Finish Date | 01/10/2026 |
| Total Days | 184 days |
| Monthly Rate | 8.5% |
| Total Interest | £122.40 |
| Total Repayment | £362.40 |
| APR | 128.01% |
Step 1: Monthly interest amount
£240.00 × 8.5% = £20.40 per month
Step 2: Duration in months
6 months
Step 3: Total interest
£20.40 × 6 months = £122.40
Step 4: Total repayment
£240.00 + £122.40 = £362.40
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)
£122.40 ÷ £240.00 = 0.51000000
Step 2: 1 + C/P
1 + 0.51000000 = 1.51000000
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
1.510000002.00000000 = 2.28010000
Step 6: APR
100 × (2.28010000 − 1) = 128.01%