




An annual percentage rate, often referred to by its acronym APR, is the yearly interest due on a loan, including interest and other fees, expressed as a percentage of the amount borrowed. Because the annual percentage rate incorporates all fees associated with the loan, the annual percentage rate can be used to determine the true cost of borrowing a given amount of money. The annual percentage rate is important as a standardized measure of the cost of borrowing money; the annual percentage rate allows for the comparability of interest rates across lenders. In fact, lenders are required by law to tell borrowers what their annual percentage rate would be on a loan. The annual percentage rate is calculated by multiplying the periodic interest rate by the number of periods in a year.
Rate this Annual Percentage Rate definition...




Where is the market headed? The answer may surprise you. Find out with the exclusive & Barron's recommended charts of Chart of the Day. 

Popular Terms: 401a, real GDP, inflation, command economy, in escrow, cancelled check, exdividend, 1035 exchange, required rate of return, Key Rate Duration, stock market close, margin rate, average price per share, current ratio, deferred tax, Zero Cost Collar, stock split, EBITDA, implied volatility, LIBOR, balance sheet, risk management, FTSE, deferred revenue, per diem, labor relations, retained earnings, debt service coverage, phantom income, exdividend date, liquidity ratio, FICO score, 1031 exchange, annual return, option premium, covered put, 144a, whollyowned subsidiary, irrevocable trust, APR, reverse mortgage, minority interest, open position, VIX, quality assurance, class C shares, dividends payable, limit order, diluted share


 