What is apr vs interest rate?

APR, or annual percentage rate, is a measure of the cost of credit, including the interest rate and additional fees. It is expressed as a percentage and is typically higher than the interest rate alone. The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. It is the rate at which interest accrues on a loan and is usually lower than the APR. In summary, APR includes the interest rate and other fees, while interest rate is just the cost of borrowing money.

Learning financial topics and understand how it actually impacts you personally can be daunting, but our mobile app makes it easier to understand a variety of effects such as interest rates, inflation and taxation on your long-term savings.

Learn more

Similar Questions

What is the interest rate on a business loan?

The interest rate on a business loan can vary depending on the lender, the type of loan, and the creditworthiness of the borrower....

What is the average interest rate on a personal loan?

The average interest rate on a personal loan can vary depending on factors such as credit score, loan amount, and loan term. Accor...

What is nominal and real interest rate?

Nominal interest rate is the interest rate before adjusting for inflation, while real interest rate is the nominal rate adjusted f...

Ready to get started?

Download our app and start gaining insight into your current and future finances.