APR (Annual Percentage Rate)
The yearly cost of borrowing, expressed as a percentage and including most fees.
2 min readReviewed Apr 1, 2026
Quick answer
APR is the all-in yearly cost of a loan — interest plus most required fees — expressed as a single percentage so you can compare offers.
APR vs interest rate
The interest rate covers only the cost of borrowing the money. APR adds in lender fees, points, and certain closing costs to give you a more honest annual cost.
Two loans can have the same interest rate but very different APRs. The higher APR is usually the more expensive loan in total.