what is the interest capitalization rate
1 What Is Capitalized Cost on a Balance Sheet?  Interest on an investment is the rate your investment earns on the principal amount. Interest on a debt, such as loan, is the rate you must pay to the lender on the principal amount you borrowed. Capitalized interest is used in both accounting and lending and is the interest added to the principal balance of a loan for a long-term asset. When you make an investment in a fixed-income security, such as a corporate or government bond, you earn interest on your investment.