Explainer
- Interest Rate: Cost of borrowing without most fees.
- APR: Annualized rate that includes fees (origination, certain costs).
Why it matters
- For installment loans, compare APR across lenders.
- For credit cards, purchase APR + fees define real cost of carrying a balance.
Steps to compare offers
- Line up APR, fees, term.
- Calculate total interest over the life of the loan.
- Watch compounding and promotional rates.
Frequently Asked Questions
Is a lower interest rate always cheaper?
Not if fees make the APR higher.
Do all fees go into APR?
Not always (varies by product/region). Compare total cost too.
Calculate Your Cost
Use our APR vs. Rate calculator to see your real cost in seconds.