Financial Glossary
APR (Annual Percentage Rate)
APR represents the total annual cost of borrowing money, including the interest rate plus any fees or additional costs associated with the loan. It is expressed as a percentage and provides a more complete picture of loan costs than the nominal interest rate alone. APR is standardized, making it easier to compare loan offers from different lenders.
Example
A mortgage with a 6.0% interest rate and $3,000 in origination fees might have an APR of 6.3%. The APR is higher than the interest rate because it spreads the fees across the loan term. When comparing mortgage offers, the lower APR typically represents the better deal, assuming all other terms are equal.
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal, while APR includes the interest rate plus lender fees, points, and other charges. APR is always equal to or higher than the interest rate. Use APR to compare total loan costs between lenders.
Why do lenders show both interest rate and APR?
APR provides a standardized way to compare loan costs including fees. Federal law requires lenders to disclose APR so borrowers can make informed comparisons. The interest rate determines the monthly payment, while APR reflects the total cost.
Related Resources
Official Sources
Singapore calculators use data from the following official government agencies:
- Inland Revenue Authority of Singapore (IRAS) — Personal income tax rates, reliefs, and rebates.
- SingStat (Department of Statistics Singapore) — Economic indicators, wage data, and household statistics.
- Ministry of Finance (Singapore) — Fiscal policy, GST rates, and government budget data.
- CPF Board — CPF contribution rates, allocation ratios, and withdrawal rules.
Methodology
Our Singapore calculators follow income tax rates, CPF contribution rates, and GST rates published by IRAS and the Ministry of Finance. Economic data is sourced from SingStat and the Department of Statistics. All figures are for educational purposes and should be verified with a qualified professional.
Data Sources
All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.
Last updated: June 2026. Information may change; always verify with official sources.
Last Updated: June 2026 — Reviewed Against Official Sources