Financial

Cumulative Interest

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Cumulative Interest

The sum of all interest payments to date or over the life of the loan.

This is not a good measure of the cost of credit to the borrower because it does not include upfront cash payments and it is not adjusted for the time value of money. See Interest Cost.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive
span xml:lang="EN-GBThis also includes the cumulative interest that was credited to my account at the end of the month, the one net of 15 per cent withholding tax.
As at August 31, 2013, KEV's outstanding RULS of RM1.67 billion comprised cumulative interest owing to shareholders of MYR 775.2 million (FY2012: MYR 619.7 million).
"If we add up the interest rate advantages gained in the period 2010 to 2012 and those that Germany will benefit from in the years to come, we arrive at cumulative interest relief for the German budget of an estimated 67 billion euros," Allianz said in a paper published last September.
Religare Finvest is offering up to 12.5 per cent on its NCDs for retail investments of less than Rs 5 lakh for a five-year tenure under the cumulative interest payment option.
The subordinated debt is rated two notches below BII's 'national long-term rating of AAA(idn) to reflect the instrument's cumulative interest deferral condition.
"The cumulative interest rate was 4.11 percent," says Joe Crossett, Liberty Hospital administrator.
Row 14 calculates cumulative interest, row 15 calculates total debt service (equal to principal plus interest), and row16 calculates cumulative debt service.
"A large part of the debt was due to cumulative interest that often surpasses the amount of money actually borrowed.
The trading conditions deteriorated during 2007 due to cumulative interest rate increases which, when combined with the credit crunch in the autumn, resulted in fragile consumer confidence, particularly in big ticket retail sectors such as the upholstery market."
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