| Loan Amount | £1.00 |
| Start Date | 09/03/2026 |
| Duration | 1 months |
| Finish Date | 09/04/2026 |
| Total Days | 31 days |
| Monthly Rate | 1% |
| Total Interest | £0.01 |
| Total Repayment | £1.01 |
| APR | 12.68% |
Step 1: Monthly interest amount
£1.00 × 1% = £0.01 per month
Step 2: Duration in months
1 months
Step 3: Total interest
£0.01 × 1 months = £0.01
Step 4: Total repayment
£1.00 + £0.01 = £1.01
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)
£0.01 ÷ £1.00 = 0.01000000
Step 2: 1 + C/P
1 + 0.01000000 = 1.01000000
Step 3: t (Duration in years)
1 months ÷ 12 = 0.08333333 years
Step 4: 1/t
1 ÷ 0.08333333 = 12.00000000
Step 5: (1 + C/P)1/t
1.0100000012.00000000 = 1.12682503
Step 6: APR
100 × (1.12682503 − 1) = 12.68%