An annual percentage rate (APR) is another rate you may encounter when borrowing money. An APR is the interest rate for an entire year, rather than just a monthly fee or rate, on your credit cards or loans, plus any costs or fees associated with the loan. This is the total cost of owning the credit card or loan, expressed as a percentage. The purpose of the APR is to make it easier to compare lenders and loan options.
Credit card companies are required to disclose the APR before they issue it and also on monthly statements.