What is APR?

What Is an Annual Percentage Rate (APR)?
The term annual percentage rate (APR) refers to the annual rate of interest charged to borrowers and paid to lender. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction. The APR provides consumers with a bottom-line number they can easily compare to rates from other lenders.

The APR alone does not provide an absolute amount of interest consumers are paying. The APR along with duration of the loan determines exact amount of interest. For example, a borrower has $100 payday loan from Onlinepaydaynow.com at the APR of 200%. Total interest this borrower would pay is $200 if borrower paid off this loan in 1 year ($100X200%). However, total interest would be $16.67 if borrower paid off this loan in 1 month, ($100X200%)X(1/12).

We are here to help you!

Apply for loan

Apply Now

Call us at


Contact Us

Talk to Advisor

Meet the Advisor
Scroll to Top