APR (Annual Percentage Rate)
The yearly cost of borrowing, including interest and certain fees, shown as a percentage.
APR expresses the annual cost of a loan or credit product, incorporating interest and some fees, which makes it easier to compare borrowing options. A lower APR means cheaper borrowing over the life of the debt.
Examples
- A credit card with a 24% APR is far more expensive than a loan at 7% APR.