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Finance

Annual Percentage Rate

The real yearly cost of borrowing money, including interest and most fees.

APR makes it easy to compare loans and credit cards. It includes interest plus things like origination fees. The lower the APR, the cheaper the loan.

It's like the sticker price on a car that shows the total cost after all the hidden extras are added up.

Real world: A credit card advertises 18% interest but the APR is 22% after fees — that's the number you should actually compare.

💡 Always look at APR instead of just the interest rate — it's the honest number that tells you how much borrowing really costs.