Finance & Moneyintermediate
APR
Annual Percentage Rate
Definition
The yearly cost of borrowing money, shown as a percentage that includes the interest plus most fees, so you can compare loans fairly.
Why it matters
APR lets you see the true cost of credit cards and loans at a glance, helping you avoid deals that look cheap but quietly cost a fortune.
Example
A credit card with a 24 percent APR costs far more over a year than a loan at 9 percent APR for the same balance.
Related terms
Learn the language of business - and build the systems behind it.
Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.
Take the free founder quiz