APR

¹ American  

[ey-pee-ahr] / ˈeɪˈpiˈɑr /

noun

Finance, Banking.

1. annual percentage rate: the annual rate of interest that a bank or other creditor charges for lending money to a borrower.

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Apr. ² American  

abbreviation

1. April.

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APR ¹ British  

abbreviation

1. annual percentage rate

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Apr ² British  

abbreviation

1. April

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Usage

What does APR mean in banking? APR is an abbreviation of annual percentage rate, which is the annual rate of interest a bank or other creditor charges for lending money to a borrower. The APR is expressed as a percentage of the loan amount and includes not only the annual interest on the loan but all other costs involved in getting the loan.An APR can also refer to the annual rate of return on an investment (also called the annual percentage yield or APY), such as a savings CD (certificate of deposit), expressed as a percentage of the investment amount.

Etymology

Origin of APR

First recorded in 1970–75

Example Sentences

Airbus said it would propose a 2025 dividend of 3.20 euros a share at its shareholders’ meeting on Apr. 14, compared with a dividend of 2 euros a share and a special dividend of 1 euro a share for the previous year.

From The Wall Street Journal

For those who are saddled with burdensome credit-card debt, experts recommend contacting the bank’s customer-service department to negotiate lower interest rates, or transferring balances to a new card with a 0% introductory APR that puts payments entirely toward the principal.

From MarketWatch

“This pilot will give eligible renters a flexible option to apply to pay rent in two equal payments over two weeks at 0% APR,” an Affirm spokesperson told MarketWatch.

From MarketWatch

Affirm said its product itself carries 0% APR and no late or hidden fees.

From MarketWatch

He said the company disagrees with advocates’ use of an “effective APR” calculation, arguing that monthly membership fees are not legally defined as interest.

From MarketWatch