The interest which is earned by the holder of a debt instrument or interest rate derivative but not yet paid. In bonds, it is the interest accumulated on a bond between the day of the last interest payment and the day exactly before the settlement date. Rule for calculating accrued interest different from one type of instruments to another. Principally, it depends on the interest accrual day count convention (such as actual/ actual, actual/ 360, 30/ 360, or actual/ 365).

For more details, see also accrued interest (finance).