In personal finance, what does APR stand for on a loan or credit card?

In personal finance, APR stands for annual percentage rate.

APR expresses the yearly cost of borrowing as a percentage. Depending on the jurisdiction and product, it may incorporate interest and certain fees, making it more useful for comparing loans than a bare interest rate alone. Credit-card APRs are often variable and may differ for purchases, balance transfers, and cash advances.

APR is not always identical to the effective annual interest rate. The effective rate can account for compounding, while APR is a standardized disclosure measure defined by consumer-credit rules. Exact inclusions vary by country and financial product.

A lower APR generally means lower borrowing cost when loan amounts, terms, fees, and repayment schedules are otherwise comparable. Consumers should still check the total repayment amount, because two products with similar APRs can have different terms or penalties.