APR Loan

Hi there everyone,

This could sound a bit dumb from my side but I need someone to clarify this for me.

I was checking the loans option and after comparing some I made some calculations and was not making much sense in my head.

I was comparing the maximum loan that I’m allowed which is £11,450, which gives me an APR of 10.0% on a 60 month contract. this would end up paying a total of £14,434.89.
I made some calculations and I was getting a total of 20.67% APR and not the said 10.0%.

In contrast I compared a £1000 on a 12 month contract and I would get a 20.4% APR. This one would end up paying a total sum of £1,103.43 and after calculating I was getting a 9.37% APR.

Am I making my calculations wrong or am I missing something?

Thank you for your time everyone

The APRs quoted are correct, it looks like you’re comparing the borrowed amount to the total amount due over the entire period as a percentage difference, which isn’t how APR works. You can plug the numbers into a loan calculator and they come to the same totals +/- a few pounds.


Interest is calculated daily factoring in payments made, so as you pay it off the interest reduces as it goes. This is why if you make an overpayment, the overall amount of interest you pay also reduces.


Monzo are not actually the best provider to go with, I did and ended up regretting it as I didn’t shop around, NatWest can do 10k loans for as little as 5% APR, supposedly anyway

Don’t come @ me, I was pressured in to it by a person I considered a friend… Yeah, massive mistake
Don’t EVER be pressured into doing something like I stupidly allowed myself to be


Worth saving a couple of grand