difference betweeninterest and apr represents a topic that has garnered significant attention and interest. interest rate: What's the difference? What's the differencebetween interest rate and APR? A loan’s interest rate shows the basic cost of borrowing money, but the APR gives you a more complete picture of the loan’s total cost. In this context, 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 total annual cost of a loan and possibly a better number to use when comparing loans with similar terms. Similarly, 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 interest rate, but also any additional fees and costs associated with it.
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