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A method of paying interest where the interest is added onto the principal at maturity or interest payment dates. Chicago Board of Trade glossary

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• add on interest — Method of charging interest usually in the financing of certain major types of consumer goods and generally not in real estate financing. Interest is computed on the total amount borrowed and added to the principal. Each payment is then deducted… …   Black's law dictionary

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• Add-On Interest — A method of calculating interest whereby the interest payable is determined at the beginning of a loan and added onto the principal. The sum of the interest and principal is the amount repayable upon maturity. For example, let s say Bank A… …   Investment dictionary