APR vs. APY Example Let's say that XYZ Corp. offers a credit card that levies interest of 0.06273% daily. Multiply that by 365, and that’s 22.9% per year, which is the advertised APR.

Annual percentage rate (APR) In the context of credit cards, the periodic rate times the number of periods in a year. For example, a 1.5% monthly rate has an APR of 18%. In the context of consumer ...

If the advertised APR on a credit card is 19%, for example, then an interest rate of 1.58% (19% divided by 12 months) will be imposed on the outstanding balance each month.

For example, if you have a debt with a $10,000 balance and an APR of 10% — you’ll end up paying $1,000 in interest over a one-year period if your balance remains the same.

In other words, the APR is the amount of interest you'll accrue each year on your balance, plus any additional fees. For example, if you have a credit card balance of $1,000 and your APR is 21% ...

Annual percentage rate (APR) In the context of credit cards, the periodic rate times the number of periods in a year. For example, a 1.5% monthly rate has an APR of 18%. In the context of consumer ...