Add-On Interest

Business, Legal & Accounting Glossary

Definition: Add-On Interest


Add-On Interest


Full Definition of Add-On Interest


Interest added to the principal of a loan regardless of repayment of principal. The borrower pays interest on the full principal balance for the entire loan period, not on the declining balance, even though the principal balance is reduced each month as payments are made. Add-on interest is sometimes referred to as “block interest.”


Cite Term


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https://payrollheaven.com/define/add-on-interest/
Modern Language Association (MLA):
Add-On Interest. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 30, 2021 https://payrollheaven.com/define/add-on-interest/.
Chicago Manual of Style (CMS):
Add-On Interest. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/add-on-interest/ (accessed: November 30, 2021).
American Psychological Association (APA):
Add-On Interest. PayrollHeaven.com. Retrieved November 30, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/add-on-interest/

Definition Sources


Definitions for Add-On Interest are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 19th November, 2021 | 0 Views.