Interest Expense

The money charged for the use of funds.

Tom needs $100,000 to start a business. The bank says they will loan him the money at 15% interest. This means that every year Tom has to pay the bank $15,000 (.15 x $100,000) until the money is repaid. The $15,000 is interest expense.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/interest-expense/