# Flat fee to APR converter — Creditcorp

> Convert a flat fee held over a number of days into a simple annualised rate
> and a compounded APR. See why short-term business finance shows a large APR
> even when the pounds-and-pence cost is small. Runs entirely in your browser;
> nothing is stored. General information, not advice. To borrow, head to
> [credicorp.co.uk](https://credicorp.co.uk/).

Canonical: https://creditcorp.co.uk/tools/flat-fee-apr/

## What it does

Enter three things — the amount borrowed, the flat fee as a percentage, and
the number of days you hold the money — and the tool shows:

- **Fee in pounds** — the actual cash cost (amount × fee %).
- **Simple annualised rate** — the fee scaled pro-rata to a full year
  (fee ÷ amount × 365 ÷ days).
- **APR (compounded)** — the same cost compounded across the year, which is
  why it looks much larger on short terms.

## Why the APR looks so large

APR was designed to compare year-long consumer credit. A small flat fee held
for a few days or weeks, stretched over a year and compounded, produces a very
large percentage — even though the real cost in pounds is modest. For example,
a £300 advance with a 6% flat fee held for 30 days costs **£18** — but that is
roughly **73% simple annualised** or **103% APR compounded**. The bill is £18.
Compare the cash cost, not the headline percentage.

## How it relates to Credicorp pricing

Credicorp's Business Bridging Loan and Flex facility are priced at 0.25% a day
on the outstanding balance; Credicorp Slice charges a flat 6% fee. However the
cost is expressed, the total cost of credit is capped at 100% of the amount
borrowed.

## Related

- [What is APR and why a daily rate?](https://creditcorp.co.uk/learn/what-is-apr-and-why-daily-rate/)
- [The 100% cost cap](https://creditcorp.co.uk/learn/the-100-percent-cost-cap/)
- [Slice instalment calculator](https://creditcorp.co.uk/tools/slice-instalments/)
- [Bridging Loan cost calculator](https://creditcorp.co.uk/tools/bridging-loan-cost/)
- [Glossary: APR](https://creditcorp.co.uk/glossary/#term-apr-annual-percentage-rate)