The annual percentage rate (APR) is a measure of the cost of borrowing money, represented as a percentage of the loan amount. It includes the interest rate as well as any other fees and charges associated with the loan.
The APR is intended to give borrowers a more accurate picture of the true cost of a loan by taking into account not only the interest rate, but also any points, origination fees, and other charges that may be associated with the loan. In the US, APR is typically higher than the stated interest rate on a loan because it includes these additional costs.
It’s important to note that APR is not the same as the interest rate, which is the cost of borrowing money as a percentage of the principal. Interest rate is only a part of APR