APR stands for Annual Percentage Rate and can help you compare different loan products. Whereas your Total Interest Percentage applies to the full loan amount, an APR is a rate that applies to your loan’s reducing balance over time and is standardised on an annual basis regardless of your actual term. While APR can be used for comparison purposes, it is not used to calculate your interest expense. Typically, APR is higher for short-term loans and lower for long-term loans. For example, a mortgage of $500,000 can have a low APR of 5% but a total interest percentage of 200%, meaning a total repayment of $1 million over 30 years. Businesses might want to consider the total repayment amount when comparing different product offers from different lenders.