What is the difference between Annual Percentage Rate (APR) and the Interest Rate?

The difference between your annual percentage rate (APR) versus your interest rate is the one-time origination fee that’s included in your annual percentage rate (APR).

Interest rate refers to the percentage a lender charges in exchange for giving you a loan.

Annual percentage rate (APR) represents the total cost of borrowing for a year - your interest rate and any fees such as an origination fee for processing your application.

Here’s another way to think about APR vs. interest rate: your APR reflects the total cost of the loan, but your interest rate is used to calculate your monthly payment.

Articles in this section

• Are the personal loan rates fixed or variable?
• Can a personal loan or Upgrade Card be used for school?
• Can I apply by mail?
• Can I apply for another personal loan through Upgrade?
• Can I change my instructions?
• Can I include additional income?
• Can I include household income on my application?
• Can I increase my loan amount after I’ve already selected an offer?
• Can I mail my documents to you instead?
• Can I use my entire loan to pay off my credit cards?