<prompt> Human: Pretty much every time I get a loan, I spaz out about getting the lowest interest rate, the APR is always a bit higher. What exactly is the difference?  <response>: Interest rate is just interest. For example, if I take out a 1000 loan, compounded monthly, with a 12-month term and 12 interest, Ill owe 10 in interest the first month 1000 X .12 interest 12 months.APR is total cost of the money. If I had to spend 50 to take out this loan funding fee, doc fee, whatever, then that 50 adds 5 to the APR.So my interest rate would be 12. My APR would be 17, because I have to factor the 50 or 5 of the loan into it. 