What Is APR and Why Should You Care?

Annual percentage rate, or APR, is the annual cost of borrowing money, including interest charges and fees. APR can be fixed, as is the case with most mortgages and auto loans, or you can have a variable APR, which most credit cards use. Here's an overview of what APR means and why it's important for you to understand.

APR stands for "annual percentage rate" and is the annualized cost of borrowing money, expressed as a percentage.

You may be thinking, "Isn't APR the same thing as an interest rate?" While there are many similarities between the two concepts and the terms are often used interchangeably, there are some important differences to be aware of.

Source: Fool.com