what is an interest expense 
an interest expense is the cost incurred by an entity for borrowed funds interest expense is a non operating expense shown on the income statement it represents interest payable on any borrowings bonds loans convertible debt or lines of credit it is essentially calculated as the interest rate times the outstanding principal amount of the debt interest expense on the income statement represents interest accrued during the period covered by the financial statements and not the amount of interest paid over that period while interest expense is tax deductible for companies in an individual s case it depends on their jurisdiction and also on the loan s purpose for most people mortgage interest is the single biggest category of interest expense over their lifetimes as interest can total tens of thousands of dollars over the life of a mortgage as illustrated by online calculators investopedia ellen lindner