Defined term
Annual percentage rate
Annual percentage rate is a measure of the cost of credit expressed as a yearly rate that relates value received by the consumer to the amount and timing of payments under the applicable disclosure rules.
Also known as APR
economics · Concept code GS-CONCEPT-078 · Last verified August 20, 2026
Definition and boundaries
Definition
Annual percentage rate is a measure of the cost of credit expressed as a yearly rate that relates value received by the consumer to the amount and timing of payments under the applicable disclosure rules.
Applicable jurisdiction: US federal disclosure context; applicability is transaction-specific
Definition claim verification: Verified August 20, 2026
In plain language
Use Annual percentage rate only after the cash-flow perspective, timing, contract structure, included costs, and omitted items are made explicit.
What it is not
It is not simply the note interest rate and it is not a forecast of solar investment return.
Decision context
Why it matters
Use the disclosed APR for the actual transaction and compare it with interest rate, amount financed, finance charge, payment schedule, total of payments, term, and prepayment conditions.
Applicable jurisdiction: US federal disclosure context; applicability is transaction-specific
Decision-context claim verification: Verified August 20, 2026
Information boundary
This page provides general educational context, not a site design, production guarantee, utility determination, contract interpretation, legal opinion, tax conclusion, or individualized financial advice. Verify property, equipment, utility, jurisdiction, program, and agreement details before acting.
Concept relationships
Affects
- Solar loanPublished conceptAnnual percentage rate can affect how Solar loan is evaluated
Primary sources
- Consumer Financial Protection Bureau: 12 CFR 1026.22 — Determination of the annual percentage rate
Revision 12 CFR 1026.22; current electronic regulation · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- Consumer Financial Protection Bureau: What is the difference between a loan interest rate and the APR?
Revision Reviewed 2024-01-30 · Source event as of January 30, 2024 · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
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