Capitalized Interest Calculator

Calculate Capitalized Interest







Formula

To calculate the Capitalized Interest:

\[ CI = WAAE \times IRB + WAAEe \times WAIR \]

Where:

Capitalized Interest Definition

Capitalized interest is an amount of unpaid interest that gets added to a loan. If loan interest is not paid on time, a lender may capitalize that interest and add it to the principal.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ CI = 50000 \times 0.05 + 20000 \times 0.04 = 2500 + 800 = 3300 \]

The capitalized interest is $3,300.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ CI = 100000 \times 0.06 + 50000 \times 0.03 = 6000 + 1500 = 7500 \]

The capitalized interest is $7,500.