What does APR stand for?

  APR stands for annual percentage rate. In simple terms, it’s the cost of borrowing money. APR is a calculation of the full amount you will pay for a loan over the course of a year. Knowing the APR will therefore allow you to see how much the interest on your loan will cost. By comparing APR rates, you are better equipped to choose an affordable loan. Use our loan calculator to work out your repayment on your next loan. To start with, what exactly is APR and what does it mean with regard to short term loans? The APR percentage is a number advertised by lenders, enabling borrowers to easily compare similar financial products. APR represents the annual rate for borrowing or earned through investments and includes transaction fees. APR does not account for compounding interest. On a loan, APR can either be variable or fixed. Variable APR is unpredictable because it can vary from month to month, affecting your payment. Moneyboat offers clients a fixed APR rate so you can understand and budget for your loan payments without unexpected curveballs.

How is APR calculated?

The APR is calculated using a number of factors, including the amount of your loan, the schedule of your loan payments and any extra late charges that may be added to the total loan repayment.  

How does APR per month work?

APR is typically added to a debt owed on a monthly basis. If you’d like to calculate the monthly interest rate simply divide the APR by 12. So if the APR is 12% the monthly rate is 1% and if you owe £1000 you will be charged £10 interest each month.  

How do I find out what my total APR is?

An APR can be calculated by multiplying a monthly percentage by 12. If a loan charges 12% a month, the APR will be 144%.  

APR and Loan Repayments

In addition to publishing our APR, we make things clear for customers by providing a detailed breakdown of your repayment schedule. This includes the dates of repayment, amount borrowed, and interest repayment amounts, and duration between payments. In addition to the APR, we display this breakdown of repayments on both the pre-contract information sheet that we provide as well as the loan agreement and our funding confirmation email. The following equation is used to calculate the APR for each loan where the left hand side represents amount borrowed and the right represents repayments. The table below shows an example of what we’d charge you on a £400 loan to be repaid over a 4 month period in 4 instalments. The table below includes the following interest:
  • 0.7% – the daily rate of interest charged, which is LESS than the 0.8% CAP the Financial Conduct Authority has introduced

The table below shows an example of what we’d charge you on a £400.00 loan to be repaid over 113 days or 4 months (4 instalments). The table below includes the following interest:

  • 0.7% – the daily rate of interest charged, which is LESS than the 0.8% CAP the Financial Conduct Authority has introduced
Amount borrowed Length of time Total to repay   Capital Paid Interest Paid Capital Balance Remaining
£400.00 21 days £149.37 £90.57 £58.80 £309.43
30 days £149.37 £84.39 £64.98 £225.04
29 days £149.37 £103.69 £45.68 £121.35
33 days £149.37 £121.35 £28.02 £0.00
Total: £400.00 113 days £597.48 £400.00 £197.48

What does APR mean for Payday loans?

Taking into account all the interest and the charges listed above the loan carries a Representative 939.5 % APR.

Why is the APR for UK Payday loans so high?

UK payday loans are unsecured. By nature, this means that the risk that the lender is taking on the borrower is high and often the risk of loan defaults in this landscape is high. Payday lenders therefore often offer higher interest rates to cover their potential risks.

From a lender’s point of view, the additional costs of providing a small loan are the same as those of providing a larger one. A smaller short-term lender still needs the same equipment and staff to process a loan as a larger bank does. However, a longer loan term means that a lender can actually recover more of their costs, but in a less visible way.

What is the average APR for a payday loan?

  A typical payday loan in the United Kingdom can be 1000% APR or more with a daily interest rate of up to 8%. Remember, the above example is over 113 days; the interest charge for credit is 0.7% per day so will change depending on the number of days the loan is taken out for. Should you require more information or a further explanation please contact us via phone or email.  

Why is APR a bad measurement for payday loans?

  For payday and short term loans, APR alone isn’t the single most reliable method of showing how desirable or affordable the loan will be for the customer. Payment size, additional fees and the term of the loan are also essential to calculating overall value and to obtain a full picture of the deal being offered. To become a super savvy payday expert, take these additional factors into serious consideration: 1. Equivalent APR 2. Loan term 3. Payments 4. Additional fees 5. Credit reporting (affects on your credit score) Numbers 1,2 and 4 are essential for determining the financial costs. Numbers 3 and 4 are important for determining the cost of repayment. Number 5 – the affects that the loan may have on your credit score is also an important factor.

The FCA and Payday Loans

The FCA & Payday Loans Looking for payday loans? UK lenders have some tough new rules to follow Gone are the days when UK payday lenders could apply endless interest charges and penalties to borrowers when they failed to repay on time. The Financial Conduct...

Effective Monthly Budgeting Tips – How to Make Your Money Go Further Each Month

Putting in place an effective budget and sticking to it each month can make an enormous difference to your life. It may seem like a headache to have to spend time working out a budget, but it really is one of the best ways to help free yourself from debt, improve...

All about fintech and Payday loans

Hot on the heels of the stricter regulations brought in by the Financial Conduct Authority (FCA) came a whole new set of online payday lenders. These businesses are less like the old guard, such as Wonga and QuickQuid and more resemble financial technology firms, or...

Getting back on the road: Funding options for car repairs

Getting back on the road: Funding options for car repairs  When it comes to putting the brakes on life, nothing does the job quite like a broken-down car. Whether you need the car to get to work, take the kids to school, do the shopping, visit family and friends or...

Keeping it Local – How to Find a Tradesman You Can Trust to Do The Job

We’re all familiar with that sinking feeling you get when something goes wrong in your home and needs fixing. There’s the uneasy feeling that comes with the safety, warmth and security of your home being compromised, which is bad enough. On top of this, there’s...

Three Things to Consider When Applying for a Payday Loan

Applying for payday loans online is pretty straightforward, but that doesn’t mean you can afford to take your eye off the ball. There are several things you need to be aware of when filling in an application for a payday loan and it pays to be prepared. Here’s a...

Planning for Christmas on a Budget – Tips to Make Christmas Special Without Spending the Earth

Let’s face it, 2020 has been a pretty disastrous year for most of us. Covid 19 has scuppered plans left, right and centre and many people are far worse off than they were a year ago. We also face a near future where getting together with loved ones is difficult, if...

Surviving Black Friday – How to Shop Safely and Bag a Bargain

Surviving Black Friday - How to Shop Safely and Bag a Bargain Black Friday and Cyber Monday used to be very American affairs … that was until about five years ago when we all decided we wanted in on the action. Us Brits have now fully embraced the Black Friday...

Tips for avoiding winter car repairs

How to Avoid Winter Car Repairs - Small Steps That Can Help You Avoid Unexpected Breakdowns   When it comes to financial planning, something many people don’t consider is taking steps to prevent emergency costs from occurring. As short-term lenders, we are...

The Very Latest Online Loans to Apply For

A Brave New Online World of Lending - The Very Latest Types of Online Loans to Apply ForGaining access to finance has never been easier, thanks to the internet and the opening up of the loans marketplace. Navigating the online loans marketplace, as a consumer, is not...

How to Earn Fast Cash – 8 Creative Ways to Save and Make Money Quickly

Most of us will have been in the sticky situation of needing fast cash at some point in our lives. Here are some creative ways to find the cash you need to fend off that financial emergency without having to borrow money.

Moneyboat’s Service Is Rated: Excellent | 9.5/10

Loans for you

Part of Evergreen Finance London Limited, Moneyboat UK is a transparent and flexible short term and payday loans direct lender.

We offer loans of anything between £200 – £1500 for a minimum of 10 days to a maximum of 6 months. When you take out a loan with Moneyboat, all of your repayments are clearly set out and simple to understand.

Funded loans

Top rated reviews


Positive experience

Satisfied Clients