---
title: APR
description: Annual percentage rate (APR) is a measure used to calculate the percentage of principal on a loan that an individual or business will pay per year.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [APR](https://www.realized1031.com/glossary/apr)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 22, 2022 12:00:00 PM

Annual percentage rate (APR) is a measure used to calculate the percentage of principal on a loan that an individual or business will pay per year. It is ultimately expressed as a percentage that quantifies the annualized cost of funds during the term of a loan, though it does not account for compounding interest. APR is best used as a measure of the cost of funds and is a bottom-line figure that can be compared across a spectrum of lenders.

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