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What is APR?

APR, or annual percentage rate, is the interest rate stated as a yearly rate. An APR for a loan can include fees you may be charged, like origination fees. APR is important because it can give you a good idea of how much you’ll pay to take out a loan. This is usually shown if you are borrowing money. APY, or annual percentage yield, on the other hand, is shown on things like savings accounts that pay you.