How do I account for interest paid on a loan?
Some institutions send a separate transaction for principal paid and interest paid on a loan, but some institutions only send a single transaction for the total amount paid. If your institution sends a single transaction for principal + interest paid, you can split the transaction. Click on the transaction to open the detail view, and click on + Split This Transaction at the bottom. Use the Fees and Charges category to track your interest paid. You can add a custom subcategory for all your loan payments if you wish. You will need to obtain the amount spent on interest vs. principal from your financial institution. Note: The debt account balance will always be accurate, as the institution sends us the remaining balance regardless if the transaction is displayed.