Per annum means “for each year” or “yearly.” It's a Latin phrase that shows up most often when people talk about money, particularly interest rates or salaries.

When a bank says an account earns 3% interest per annum, that means you'll earn 3% over the course of one year. If you have $100 in that account, you'd earn $3 per annum. A job posting might list a salary of $50,000 per annum, meaning that's what you'd earn in a full year of work.

You might wonder why people don't just say “per year” or “yearly.” Sometimes per annum appears in formal documents, contracts, or financial statements where precise, traditional language matters. It's also common in British English. But in everyday conversation, people usually stick with simpler terms.

You might also see it abbreviated as p.a. in financial documents or job listings.