Definition
Annual percentage rate
The annual percentage rate, usually shortened to APR, is the yearly cost of borrowing expressed as a percentage, including most fees and charges as well as the interest rate itself.
It is the number to compare between loan offers, because a headline interest rate can hide arrangement fees, mandatory insurance and other charges.
Tools that use this term
Loan Calculator
The monthly payment on a loan, the total cost of borrowing and the interest it hides.
Mortgage Calculator
The real monthly cost of a mortgage: repayment, interest, taxes, insurance and total cost over the term.
Debt Payoff Calculator
When a balance reaches zero at your planned payment, and how much interest it costs.
Car Affordability Calculator
The full monthly cost of a car, and whether it fits inside your budget.