PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What's the difference between the interest rate and the APR on a car loan?
"While shopping for car loans, I've noticed that lenders quote an interest rate, APR, or both.
What do these two rates mean?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The interest rate is the percentage of the principal your lender charges you for borrowing the loan.
The APR, or annual percentage rate, includes interest plus fees that start accruing on the first day of your loan.
Generally speaking, if you want to know what you’re actually paying, calculate the APR.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies