Oct 14, 2025 · Learn how interest rate and APR differ and why each matters when evaluating loans. Understand their roles in determining the true cost of borrowing.

Sep 12, 2025 · Interest rate and APR both summarize the cost of borrowing as a percentage, but the interest rate doesn’t account for lending fees. APR is a more accurate description of the …

While you may sometimes see them used interchangeably, the key difference between an interest rate and annual percentage rate (APR) is that APR represents not only the debt product's …

Jul 1, 2025 · The interest rate on a mortgage indicates how much interest you’ll pay for the amount you borrow. The annual percentage rate (APR) is the interest rate plus additional fees …

While your interest rate is the percentage of the principal balance you pay on a loan, your APR includes your interest rate and other fees or expenses you’ll pay to your lender.

APR is the annual cost of a loan to a borrower — including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees …

Dec 30, 2025 · APR vs. Interest Rate: What’s the Difference? Simply put, the interest rate is the amount a lender charges you to borrow money. The annual percentage rate, or APR, is the …