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interest expense

interest expense

3 3.9
Money a company pays for borrowing money recorded as a cost in its accounts
  • noun
  • /ˈɪntrəst ɪkˈspɛns/
  • Specialized
translation icon : gasto por intereses
  • Investors need to account for interest expense when evaluating the profitability of a business.
  • net interest expense
  • annual interest expense
  • reduce interest expense

You have higher interest expenses on autos, car values are going down at the same time credit cards defaults are going up.

Examples

  • However, you get to write off your interest expenses up to certain limitations in most cases.

  • In addition, interest expense would become so large as to crowd out whole categories of federal spending.

    Academic text (2010)
  • Roughly speaking, every 1 percentage point rise in interest rates would increase interest expenses by $100 billion.

    Blog text (6)
  • For all practical purposes, when you are talking about rental property, interest expense is a business expense.

    Blog text (3)
  • You'll notice that there is a line called "Interest Expense" that comes before the "Tax Expense" line.

    Blog text (6)
  • Second, federal interest expense will rise exponentially, as the Treasury's borrowing costs grow with the debt.

    Academic text (2010)
  • After accounting for interest expense of roughly $200 million, J.C. Penney would be running at breakeven.

    Blog text (10)
  • On consolidation of Federal Reserve balance sheets with Treasury monetary accounts, both the net publicly held debt of the Treasury and the net interest expense on the debt would be smaller.

    Academic text (2017)
  • The company's interest expense increased due to higher borrowing costs over the past year.

  • By refinancing the loan, she was able to lower her monthly interest expense significantly.

Synonyms

interest
vsinterest expense
  • Specialized
619 3.3

Extra money paid when you borrow money or earned when you save money

is only the payment side recorded as an accounting cost rather than earnings
borrowing cost
vsinterest expense
  • Specialized
4 3.1

Money you pay in interest and fees to use money from a bank or another person

is the regular payment recorded in accounts as a cost for using funds

How Large

usury
  • Specialized
10 9.8
high-interest
12 4.2
interest expense
  • Specialized
3 3.9

Surface Forms

Morphology

interest + expense

The phrase is a straightforward composition: 'interest' (payment charged for borrowing) + 'expense' (money spent), so the meaning 'cost consisting of interest payments' is directly derivable from the parts. This is a common, literal financial collocation with clear parallels in other languages, so a B1 learner who knows both words will almost certainly understand it.

Etymology

Interest expense comes from a simple picture: interest is the extra money you pay when you borrow, and expense means a cost. Imagine money leaving a company to pay a loan; that outgoing money is the 'interest expense', so it is recorded as a cost in the company's records.