net interest expense

Definition

The total amount of interest paid by a business on funds it has borrowed less the amount of income earned in interest on amounts it has lent out or invested. For example, a company might pay $500 a month in interest on a business loan while earning $45 in interest in the same time period in a business savings account. The total amount of net interest expense for that month would be $455.

Use this term in a sentence

The net interest expense was a key metric to analyze as the company lends money as well as leveraging itself.

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You need to try and factor in the net interest expense to your budget so that you know you can handle it all.

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There was a very large net interest expense and we were all really happy with it and happy with what we were doing.

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net interest cost (NIC) net interest income