accrued interest

USAGE SUMMARY

"accrued interest" is correct and usable in written English. You can use it in financial contexts, particularly when discussing interest that has accumulated over time but has not yet been paid. For example, "The accrued interest on the loan will be added to the total amount due." Alternative expressions include "accumulated interest" and "earned interest."

✓ Grammatically correct

Academia

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Such deferred (accrued) interest may be capitalized.

Yale University

Accrued interest The interest that a loan accumulates over time.

University of California, Berkeley

It would reduce debt and accrued interest from about $950 million to $250 million.

The New York Times

It includes a reasonable amount to cover six decades of accrued interest.

The New York Times - Sports

The San Francisco-based business is looking to clear $36.5m of debts and accrued interest.

The Guardian

The money earns interest, and when people claim their funds, they receive the accrued interest.

The New York Times

That amount should be reported on Schedule B and the accrued interest subtracted.

The New York Times

The accrued interest, combined with the collection agencies' opulent fees, is now several times the principal.

The New York Times

The debt, principal and accrued interest has grown to $45.2 million.

The New York Times

The remaining balance and accrued interest is forgiven after 25 years of payments.

The New York Times

Each payment will be applied first to accrued interest and then to principal.

Cornell University

Expert writing Tips

Best practice

When discussing financial statements, clearly specify the period over which interest has accrued to provide context and avoid ambiguity.

Common error

Avoid using "accrued interest" when you actually mean simple interest. Simple interest is a one-time calculation on the principal, whereas "accrued interest" refers to the accumulation of interest over time, which may include compounding.

Linguistic Context

The phrase "accrued interest" functions as a noun phrase, where "accrued" acts as an adjective modifying the noun "interest". Ludwig AI confirms that the phrase describes interest that has accumulated over time but has not yet been paid. The examples from Ludwig illustrate its usage in various financial contexts.

Expression frequency: Very common

Frequent in

News & Media

40%

Academia

35%

Formal & Business

15%

Less common in

Wiki

7%

Science

2%

Reference

1%

Ludwig's WRAP-UP

In summary, "accrued interest" is a grammatically sound and very common term that refers to the interest that accumulates on a principal sum over a period, as verified by Ludwig AI. It's most frequently used in news and media, academia, and formal business contexts. When writing, it's important to specify the time frame over which the interest has accrued and to distinguish it from similar concepts like simple interest. Alternatives such as "accumulated interest" or "interest payable" can be used depending on the specific context. Understanding its proper usage helps ensure clear and accurate communication in financial and legal settings.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

accumulated interest

Focuses on the total interest gathered over a period, emphasizing the accumulation process.

accruing interest

The continuous action of interest accumulating over a period.

interest payable

Highlights the liability aspect, indicating interest that is owed but not yet paid.

outstanding interest

Emphasizes that the interest remains unpaid or unsettled.

unpaid interest

Directly states that the interest has not been paid.

interest due

Indicates that the interest payment is required or expected.

interest receivable

From the lender's perspective, indicating interest that is expected to be received.

capitalized interest

Refers to accrued interest that has been added to the principal balance.

interest earnings

Highlights the interest earned on an investment or deposit.

interest buildup

Describes the gradual increase of interest over time.

FAQs

How is "accrued interest" different from simple interest?

Simple interest is calculated only on the principal amount, while "accrued interest" reflects the accumulation of interest over time, possibly including compounding. Therefore, "simple interest" is a one-time calculation, and "accrued interest" is the total built up over a period.

What are some alternatives to the phrase "accrued interest"?

Depending on the context, you can use phrases like "accumulated interest", "interest payable", or "unpaid interest" to convey a similar meaning.

How does "accrued interest" affect loan balances?

Accrued interest is added to the principal loan balance over time. This means that the amount you owe increases as interest accumulates. This process can be especially noticeable during periods of deferment or forbearance, when payments are paused, but interest still accrues. When payments resume, the accrued interest may be capitalized, meaning it's added to the principal, increasing the total amount you owe.

When is "accrued interest" typically paid?

Accrued interest is usually paid when the principal is repaid, or at specified intervals as defined in the loan or bond agreement. In some cases, such as with certain bonds, the interest is paid out periodically (e.g. semi-annually), while in others it accumulates until the maturity date.