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APR (Annual Percentage Rate)

The yearly cost of borrowing, expressed as a percentage, including most fees.

Why it matters

APR bundles the interest rate together with most upfront fees into a single yearly percentage. It is the honest comparison number for two loan offers, because a lower interest rate paired with fatter fees can produce a higher APR — meaning the lower-rate loan is actually more expensive.

Learn deeper

Loans — What borrowing costs

See also

Educational only — not financial, tax, or legal advice.