• Add-on interest is a method of calculating a loans cost by combining principal and interest into a single amount owed. The result is costly to the borrower.


    Add-On Interest meaning & definition 1 of Add-On Interest.


  • interest that is added to the principal (= original amount) of a loan. The loan payments are equal to the interest added to the original amount divided by the number of months of the loan.

    Add-On Interest meaning & definition 2 of Add-On Interest.

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