How Do I Work Out Apr

[bluemoon1]

I have had a direct debit knocked back so my bank is going to charge me £15. The amount that should have paid would have been £16. The amount should have gone out on the 12th but is now going on the 20th
I would like to now what the APR would be had the bank lent me the £16 and charged me £15 for the nine days owing.
An example of the calculation would be most appreciated.

[Buenchico]

The APR formula is incredibly difficult to get to grips with. (I've got a maths degree and I definitely don't like it!):
https://en.wikipedia.org/wiki/Annual_percentage_rate#European_Union

If you google 'APR calculator' you'll find several sites which claim to be able to give you a figure but, since none of them deal with all seven variables that make up the formula, none will be really accurate. However a very rough figure is 'approaching 20,000%'

[hc4361]

I agree with the 20,000 estimate.

APR is useless when it comes to very short term loans.

[bluemoon1]

Thank you both

[bluemoon1]

I clicked on your link Buenchico and ducked as soon as I saw it. Thank you anyway.

[fiction-factory]

I don't think the fee is connected in anyway to the bank's lost interest- it's the contractually agreed fee and is to cover the cost of sending a letter and any admin. I think they'd find it difficult to justify the £15 but presumably they factor in the cost of the overheads of their systems, office space etc and also want a deterrent effect