Great Future · money

APR vs interest rate

Compare the borrowing rate with a broader annualised cost measure.

Reviewed 21 September 2026

Direct answer

An interest rate prices borrowing interest. APR is intended as a broader annualised comparison measure and may include specified fees, but definitions and disclosures vary by jurisdiction and product.

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Worked example

Compare two written quotes using the same loan amount and term. Enter each rate and separately account for disclosed fees; a lower headline rate can still have a higher total cost.

Limits to check

Do not infer a South African statutory disclosure from a generic APR label. Use the lender’s pre-agreement statement and quotation and check the National Credit Act disclosure.

Official and primary sources

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