APR and the Total Cost of Credit: The Maths of Borrowing

Loans, credit cards and finance deals all quote an APR – but what does it actually mean, and how much will you really repay? This course explains APR and representative APR, shows how to compare total amounts payable, and works through examples showing how loan length and interest rate change the cost of borrowing.

Tutwoo is an independent learning provider. This course gives general information based on published official guidance for the 2026/27 tax year (6 April 2026 to 5 April 2027). It is not personal financial, tax or legal advice. For help with your own situation, contact HMRC, MoneyHelper, Citizens Advice or a regulated adviser.

© 2026 Tutwoo UK Limited. This course was created in-house by Tutwoo and is our original work. It is for your own learning only: please do not copy, share, record or resell it.