Does APR represent the total cost of credit?

APR, or Annual Percentage Rate, represents the total cost of credit expressed as a yearly interest rate. It includes not just the interest charged on the loan, but also any associated fees, providing a more comprehensive view of the borrowing cost. However, it may not encompass all costs related to the credit, such as late fees or other potential charges, so it's important to consider those factors separately when evaluating the total cost of credit.