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

A 25-basis-point cut for a $30,000 car loan with a 7.64% APR would save drivers just $74 a year, while a 100-basis-point cut would cut $295 in annual interest payments, the TransUnion data show.

From MarketWatch

But even if the Fed cut rates by a full percentage point, a cardholder carrying the average balance — which was about $6,500 as of the third quarter of this year — and a 22.83% APR would only save $65 on interest in a year.

From MarketWatch

If you’re looking to cut interest costs on a credit card, you can call your card company and ask for a lower APR — the worst they could say is no.

From MarketWatch

But this only works when paired with a clear plan to pay off the debt while the APR is 0% during the introductory period, which is usually 12 to 15 months.

From MarketWatch

We have an offer at our current bank with zero APR and 2% to 3% cash back.

From MarketWatch