(APR) Annual Percentage Rate

The Annual Percentage Rate (APR) is a standardized way of calculating the cost of borrowing money or the interest rate on a loan, including mortgage loans, car loans, credit card debts, and other types of loans. It expresses the cost of credit as a yearly rate and takes into account not only the interest rate but also other fees and charges associated with the loan. The APR provides a more comprehensive measure of the cost of credit and makes it easier for consumers to compare different loans and credit products. The APR can be higher than the nominal interest rate, which only reflects the interest charged on the loan and does not include any fees or charges.