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Annual Percentage Rate

The annual percentage rate, or APR, is the annualized interest rate that is charged on a loan or other credit product. The APR represents the true cost of borrowing, taking into account not only the interest rate but also any fees or other charges that are associated with the loan. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to annual percentage rate.

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What is a Stated Annual Interest Rate? Definition, Calculation, and Examples

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What Is an Interest Rate? Definition, Types, and How It Affects You Thumbnail

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Annual Percentage Rate (APR): Definition, Types, and How It's Calculated Thumbnail

Annual Percentage Rate (APR): Definition, Types, and How It's Calculated

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Tribal Loans: Definitive Guide on Native American Loans

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What is a Good APR For a Car Loan? Thumbnail

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Title Loan Explained: How It Works, Examples, Pros & Cons Thumbnail

Title Loan Explained: How It Works, Examples, Pros & Cons

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Finance Charges: Definition, Occurrences and How to Calculate

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Annualization: Definition, How It Works, and Examples Thumbnail

Annualization: Definition, How It Works, and Examples

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Average Daily Balance Method: What It Is, How to Calculate, Examples Thumbnail

Average Daily Balance Method: What It Is, How to Calculate, Examples

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Learn About Annual Percentage Rate

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Thumbnail for Blog Article: Glossary of Lending Terms

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About Annual Percentage Rate

The annual percentage rate, or APR, is the annualized interest rate that is charged on a loan or other credit product. The APR represents the true cost of borrowing, taking into account not only the interest rate but also any fees or other charges that are associated with the loan. The APR is calculated by dividing the total amount of interest and fees paid over the course of a year by the total amount borrowed, and it is expressed as a percentage. The APR is an important metric for consumers, as it allows them to compare the cost of different credit products and make informed decisions about borrowing. In the United States, federal law requires lenders to disclose the APR to consumers in a standard format.