APR (Annual Percentage Rate) is the total yearly cost of borrowing, expressed as a single percentage. It bundles the loan’s interest rate with any required fees — origination fees, application fees, or similar charges — spread over the term of the loan.

Why APR matters more than interest rate

The interest rate is what gets quoted in big numbers in lender marketing. APR is the number to compare. Two lenders can quote the same interest rate but charge very different fees, which means the true cost — and the APR — will be different. Federal regulation (the Truth in Lending Act, or TILA) requires lenders to disclose APR specifically so borrowers can compare apples to apples.

How APR is calculated for personal loans

For a fixed-rate personal loan, APR is calculated by taking the total amount of finance charges (interest + fees) you’ll pay over the life of the loan and expressing it as a yearly percentage of the loan amount. For example: borrow $10,000 at 9% interest with a $300 origination fee over 36 months, and the APR will be slightly higher than 9% because the $300 fee gets factored in.

Fixed APR vs variable APR

A fixed APR stays the same for the entire life of the loan — your monthly payment never changes. A variable APR can rise or fall based on a benchmark rate (often the prime rate or SOFR), which means your payment may change month to month. Most personal loans, including ours, are fixed-rate.

What APR range is typical for personal loans

U.S. personal-loan APRs typically range from about 6% on the low end (for borrowers with excellent credit, short terms, and small loan amounts) to 35.99% on the high end (for borrowers with limited or no credit history). Our published range is 8.99% to 35.99%, with final rate determined by credit profile, loan amount, term, and verified income.

How to read an APR disclosure

Every legitimate lender will give you an APR before you commit. Read it specifically as APR — not interest rate. Confirm the loan amount, term, and any fees included. If a lender quotes only an interest rate but not an APR, that’s a red flag.

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