Principal and interest repayment
nounprin·ci·pal and in·ter·est re·pay·mentpronounced PRIN-suh-pul and IN-trist ree-PAY-munt
Last reviewed 16 April 2026
What does the noun Principal and interest repayment mean?
A loan repayment that covers both the original amount borrowed (principal) and the cost of borrowing (interest). Most home loans are structured this way. Each repayment chips away at the debt while also covering the lender’s charge.
How the noun Principal and interest repayment is used
We chose principal and interest repayments so that each month we are actually paying down the loan, not just covering the bank's interest charge.
Synonyms
P&I repayment
Related words
Cite this entry
MLA citation: "Principal and interest repayment." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/principal-and-interest-repayment. Accessed 29 May 2026.
Chicago citation: How to Property. "Principal and interest repayment." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/principal-and-interest-repayment.
APA citation: How to Property. (2026, April 16). Principal and interest repayment. https://howtoproperty.com.au/definitions/principal-and-interest-repayment