How Do You Find Interest Expense in Accounting?

You can find interest expense on your income statement, a common accounting report that’s easily generated from your accounting program. Interest expense is usually at the bottom of an income statement, after operating expenses.

Sometimes interest expense is its own line item on an income statement. Other times it’s combined with interest income, or income a business makes from sources like its savings bank account.

If interest income and expense are combined, the line item can be called “Interest Income – net” or “Interest Expense – net.” The former is used if there’s more interest income than expense. The latter is used if there’s more interest expense than income.

For example, if a business pays $100 in interest on a loan and earns $10 in interest from a savings account, then there are more expenses than income and the line item could be “Interest Expense – Net” for $90.


identify the annualized interest rate.
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