Acronyms Dictionary
APR
Definition
Annual Percentage Rate. The yearly interest rate charged on borrowed money or earned on an investment.
Deep Dive
APR is a standard way to express the total cost of borrowing or the total return on an investment over one year. Unlike a simple interest rate, APR often includes additional fees and costs associated with a loan, providing a more accurate "bottom line" for consumers.
Examples & Use Cases
- 1Comparing the 18.9% APR of a credit card to the 4.5% APR of a personal loan
- 2A car dealership advertising a 0% APR promotional rate on new vehicle purchases
- 3Calculating the total yearly interest cost on a mortgage based on the quoted APR
Related Terms
APYInterest RateROI