Annual Percentage Rate (APR)
The total yearly cost of borrowing as a percentage, including interest and fees.
APR (Annual Percentage Rate) shows the total annual cost of borrowing as a percentage, including not just interest but also fees and other charges.
APR is the legal standard for comparing credit products in the EU and many other countries.
APR vs. nominal rate: APR is always ≥ the nominal rate because it includes fees.
APR vs. APY: APY (Annual Percentage Yield) accounts for compounding and shows the real return — primarily used for deposits.