CAPITALIZED INTEREST Definition

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CAPITALIZED INTEREST is the accrued interest added to the principal balance of a loan while you are not making payments or your payments are insufficient to cover both the principal and interest due. When this occurs, you are paying interest on interest, sometimes called "negative amortization".

Learn new Accounting Terms

QUOTE is to name the price of an asset or service, e.g. stock price or investment.

INFLATION ACCOUNTING is a system of accounting which, unlike historical cost accounting, takes into account changing prices.

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