In consumer credit, what annualized measure combines an interest rate with certain loan fees?

In consumer credit, the annualized measure that combines an interest rate with certain loan fees is the annual percentage rate, or APR.

APR is designed to make borrowing offers easier to compare by expressing borrowing costs as an annualized figure. Depending on the product and applicable rules, it can reflect interest and certain upfront charges, such as loan fees or points. The exact calculation and included charges vary by jurisdiction and product type.

APR is not always the same as the stated interest rate. A loan with fees may have a higher APR than its nominal rate, while a fee-free loan may show little difference. Credit cards may advertise different purchase, balance-transfer, and cash-advance APRs.

Borrowers should also check repayment period, payment schedule, penalties, and variable-rate terms. APR is useful for comparison, but it does not replace reading the full agreement.