Capitalized costs are incurred when building or purchasing fixed assets. ... Investopedia. Capitalized Cost: Definition, Example, Pros and Cons. Story by Alicia Tuovila • 1y.

Interest Capitalized is interest incurred on funds borrowed for the development or construction of a long-term asset. Instead of recording this interest as an expense immediately, it is added to ...

Capitalized interest increases your total student loan balance and overall borrowing cost. To understand how your balance can go up, it's important to first know how interest accrues.