APR

¹

[ey-pee-ahr]

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.

Apr.

²

abbreviation

1. April.

APR

¹

abbreviation

1. annual percentage rate

Apr

²

abbreviation

1. April

Word History and Origins

Origin of APR¹

First recorded in 1970–75

Example Sentences

Read more: My credit-card APR is 27%.

Read more on MarketWatch

The average APR hit 23.37% in October — the highest on record — and it’s still climbing.

Read more on MarketWatch

Paying over time with the debit card often comes with a 0% APR, meaning consumers don’t have to pay interest.

Read more on The Wall Street Journal

Interest-free card spending could represent an $8 billion market opportunity for companies like Affirm, if 10% of credit-card spending shifted to their 0% APR offerings, the Morgan Stanley report said.

Read more on The Wall Street Journal

Driving Affirm’s outperformance in the quarter were its 0% APR product, Affirm-branded debit card, and expanding partnerships with payment service providers, Citi said.

Read more on Barron's

When To Use

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.