Skip to main content
Rose Cove home

APR (Annual Percentage Rate)

Definition

APR is the yearly cost of borrowing, shown as a percentage. It rolls the interest rate together with most required fees, so it's the truest apples-to-apples way to compare loans.

Why it matters

Two loans can share an interest rate but have very different APRs once fees are counted. Comparing APRs, not just rates, shows the real cost.

Related