Loan guide
APR vs Interest Rate: What Borrowers Should Compare
Interest rate is the cost of borrowing principal, while APR can incorporate certain fees to provide a broader annualized comparison.
Interest rate
Used to calculate periodic interest on the principal.
APR
Can include eligible fees and costs under a defined calculation method.
Comparison
Compare offers with the same amount, term and assumptions, and review official disclosures.
Practical takeaway
A calculator estimate is not an official lender disclosure. Fee treatment and legal definitions can vary.
Run your own numbers
Use the related Fynzo calculator with consistent assumptions and compare the full result.
Estimate APRReview note
This guide is educational and should not replace medical, financial, legal or tax guidance. Last reviewed August 1, 2026.