Cumulative Interest

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Dictionary Says

Definition of 'Cumulative Interest'

The sum of all interest payments made on a loan over a certain time period. On an amortizing loan, cumulative interest will increase at a decreasing rate, as each subsequent periodic payment on the loan is a higher percentage principal and a lower percentage interest.
Investopedia Says

Investopedia explains 'Cumulative Interest'

Cumulative interest is sometimes used as a measure of loan economics to determine which loan is most economical. However, cumulative interest alone does not account for other important factors such as initial loan costs (if those costs are paid out of pocket as opposed to being rolled into the loan's balance) and the time value of money (different rates of interest over the life of different loans can lead to savings early in the life of one loan that can offset higher interest rates later in the life of that loan).
Search results for

'Cumulative Interest'

  • Student Loans: Federal Loan Consolidation | Investopedia

    http://www.investopedia.com/university/student-loans/student-loans7.asp
    ... Your interest rates are averaged based on the cumulative interest rates
    of your loans and weighted by the amount of your loans. ...

  • Financial Statements: Earnings | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements4.asp
    ... However, by the end of the fifth year, the cumulative interest expense will equal
    $3 million ($10 million - $7 million), and the cumulative net financing cash ...

  • Learn The Lingo Of Private Equity Investing

    http://www.investopedia.com/articles/stocks/09/abcs-of-private-equity.asp
    ... from later investments cause the general partner to withhold too much carried interest. ...
    Paid-in capital is the cumulative amount of capital that has been drawn ...

  • How Mortgage Refinancing Affects Your Net Worth

    http://www.investopedia.com/articles/pf/07/refinancing_mortgage.asp
    ... payment savings that can be realized by refinancing into a new mortgage at a lower
    interest rate and determining the month in which that cumulative sum of ...

  • CFA Level 1 Study Guide - Liabilities - Total Interest Cost ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/total-interest-cost-componenets.asp
    ... 2.2 What Is The Time Value Of Money? 2.3 The Five Components Of Interest Rates;
    2.4 Time Value Of Money Calculations; 2.5 Time Value Of Money Applications; ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Preferred Stock ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/preferred-stock.asp
    ... date. The corporation would tend to exercise this right if interest rates
    have fallen. Convertible ... Shares. Cumulative vs. Noncumulative ...

  • A Primer On Preferred Stocks

    http://www.investopedia.com/articles/stocks/06/preferredstock.asp
    ... Preferred stock that doesn't carry the cumulative feature is called ... issues, providing
    the investor limited protection against adverse interest rate markets. ...

  • Score A Cheap Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/08/mortgage-costs.asp
    ... by paying points each month until the month in which that cumulative sum equals ... can
    be used for refinance decisions, and comparing different interest rate and ...

  • Mortgage Basics: Fixed-Rate Mortgages | Investopedia

    http://www.investopedia.com/university/mortgage/mortgage1.asp
    ... savings that would be realized each month by refinancing into a new mortgage at
    a lower interest rate and determining the month in which that cumulative sum of ...

  • How To Read The Market's Psychological State

    http://www.investopedia.com/articles/trading/03/010603.asp
    ... the total long and short contracts in the market on a given day, and the absolute
    value of open interest corresponds to a cumulative long or short position. ...

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