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 ...

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% ...

Definition and Example Calculation. By. James Chen. Full Bio. James Chen, CMT is an expert trader, investment adviser, and global market strategist. Learn about our editorial policies.