Interest is the additional amount of money that is paid back on top of the original borrowed amount, usually expressed as a percentage. It is the cost of borrowing or the return on lending.
Related terms
Principal: The original amount borrowed or invested.
Compound Interest: Interest that is calculated not only on the initial principal but also includes any accumulated interest from previous periods.
Annual Percentage Rate (APR): The annual interest rate charged by lenders which includes both nominal interest and any additional fees or charges associated with borrowing.