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

This person had around $25,000 in credit-card debt with a 24% APR, and they took out a $30,000 personal loan at 11% interest to pay it off.

From MarketWatch • Feb. 26, 2026

Deal with that credit-card debt ASAP, given that the average APR is 22.8%.

From MarketWatch • Feb. 8, 2026

They noted that the the Affirm Card “also serves as an important vehicle to push 0% APR loans,” another product that is seeing increased popularity with Affirm’s customers.

From Barron's • Feb. 6, 2026

The annual percentage interest rate, or APR - including fees and charges - can range from 0% to more than 60%.

From BBC • Jan. 19, 2026

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.

From The Wall Street Journal • Nov. 7, 2025