Revenue, costs & profit · Core

Interest expense

Also called: finance cost

ELI5

Cost recognised for borrowing or other interest-bearing liabilities.

Used in conversation

“The number is useful only if everyone calculates interest expense the same way.”

Pitch context

You will see “Interest expense” in financial models, budgets, board packs and investor materials when the discussion reaches revenue, costs & profit.

Why it matters: In revenue, costs & profit, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 4

Direct term-level sources and supporting source families.