Finance Formulas / July 17, 2018 / Kenley Hopper
Annual Percentage rate (APR) explains the cost of borrowing with a variety of loans, including credit cards and mortgage loans. Costs are quoted as a percentage. For example, if your loan has an APR of 10 percent, you would pay $10 per $100 that you borrow each year. All other things being equal, the loan with the lowest APR is typically least expensive—but it’s usually more complicated than that.
EBITDA margin differs from the operating margin, which excludes depreciation and amortization from the profitability measure. Other variations of a firm's profit margin include gross profit margin, net profit margin and after-tax profit margin. For more on the differences between EBITDA margin and other profitability margins.
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