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APR (Annual Percentage Rate)
Plain English
The yearly cost of borrowing money, including most fees, shown as a percentage.
Professional definition
The annualized rate that reflects the cost of credit, including interest and (for many types of credit) certain fees, expressed as a yearly percentage as required by the Truth in Lending Act.
Example
A credit card with an 18% APR charges roughly 18% per year on the outstanding balance, though compounding and how balances are calculated affect the actual cost.
Common misconception
APR is not always identical to the stated 'interest rate' — it can include certain fees, which is why comparing APRs across offers is more accurate than comparing interest rates alone.