Explore commonly used personal finance terms.
APR is the annual rate charged for borrowing or earned through an investment, expressed as a percentage. It includes any associated fees or costs, providing a complete picture of the loan’s or credit card’s cost over time. Unlike the nominal interest rate, which excludes fees, APR accounts for additional charges, allowing for more straightforward comparison between financial products. This measure is crucial when evaluating loans, credit cards, or mortgages to understand the full cost of borrowing.
