Welcome to the SmallBusiness.com WIKI
The free sourcebook of small business knowledge from SmallBusiness.com
Currently with 29,735 entries and growing.

WIKI Welcome Page
Local | Glossaries | How-to's | Guides | Start-up | Links | Technology | All Hubs
 About · Help Hub · Register to Edit · Editing Help
Twitter: @smallbusiness | Facebook | Pinterest | Google+

SmallBusiness-com-logo.jpeg

In addition to the information found on the SmallBusiness.com/WIKI,
you may find more information and help on a topic
by clicking over to SmallBusiness.com and searching there.


Note | Editorial privileges have been turned off temporarily.
 You can still use the Wiki but cannot edit existing posts or add new posts.
You can e-mail us at info@smallbusiness.com.


Annual percentage rate

SmallBusiness.com: The free small business resource
Jump to: navigation, search

The terms Annual Percentage Rate and APR and nominal APR and effective APR -- some times abbreviated to EAR -- all describe the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage, credit card, etc.

It is a finance charge expressed as an annual rate.

Those terms have formal, legal definitions in some countries or legal jurisdictions, but in general:

  • The nominal APR is the simple-interest rate (for a year).
  • The effective APR is the fee+compound interest rate (calculated across a year).


SB glossary new.jpg
This term or phrase is currently an entry in The SmallBusiness.com Business Glossary WIKI. Please help expand this entry into a more detailed description.

Link to this page: "http://ec2-18-221-132-222.us-east-2.compute.amazonaws.com/w/index.php?title=Annual_percentage_rate&oldid=39066"