Accrued interest refers to interest generated on an outstanding debt during a period of time, but the payment has not yet been made or received by the borrower or lender.

Accrued interest is an important consideration when purchasing or selling a bond.

**Formula to calculate accrued interest.**

**Example:**

Suppose you borrowed a loan amounting to $ 10,000, and the interest rate is 12%, calculate the accrued interest if you didn’t pay the loan interest for 210 days.

Therefore, the accrued interest is $ 69,041.