APR (Annual Percentage Rate)
💳 Credit & loans
Quick Definition
The yearly cost of a loan including interest and fees, expressed as a percentage.
Examples
- 1A credit card with 18% APR means you'll pay 18% annually on any unpaid balance
- 2A mortgage with 4.5% APR includes the interest rate plus closing costs spread over the loan term
- 3A personal loan with 12% APR is more expensive than one with 8% APR, all else being equal
Tags
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Related Terms
Other terms you might find helpful
Compound Interest
Interest calculated on both the principal amount and previously earned interest.
Credit Score
A three-digit number that represents your creditworthiness based on your credit history.
Interest Rate
An interest rate is the percentage of principal charged by the lender for the use of its money. The interest rate on a loan or deposit determines how much you will pay or earn over time.
Quick Info
Category:Credit & loans
Difficulty:basic
Last Updated:12/15/2024