APR stands for Annual Percentage Rate, which is a strategy to calculate interest for investment and credit products. APR represents the annual rate charged for earning or borrowing money.

APR does not take into account the compounding of interest within a specific year. It is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied. It does not indicate how many times the rate is applied to the balance.

APR is calculated using below formula:

APR = Periodic Rate x Number of Periods in a Year