What does APR stand for?

APR stands for Annual Percentage Rate. It represents the cost of borrowing or the return on investment expressed as a yearly interest rate. This metric includes not just the interest rate on a loan or credit but also any associated fees or additional costs, providing a more complete picture of what it will cost to borrow money or what return an investment will yield over the course of a year. Understanding APR is essential for comparing different loan products and interest rates, as it allows consumers to accurately assess the true cost of borrowing over time. Using APR facilitates informed financial decisions by ensuring that individuals can see the broader financial implications of debt or investment choices.