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".
Barry Goldsmith
| APA | Barry Goldsmith. (2010). capitalized interest. Retrieved September 22, 2026, from http://smartdefine.org/capitalized_interest/definitions/1149428 |
| Chicago | Barry Goldsmith. 2010. "capitalized interest" http://smartdefine.org/capitalized_interest/definitions/1149428 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, capitalized interest, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/capitalized_interest/definitions/1149428>. |
| MLA | Barry Goldsmith. "capitalized interest" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/capitalized_interest/definitions/1149428> |