Why isn't my whole loan payment an expense?

A common surprise. Only the interest counts as an expense — here's why that's correct.

• When you borrowed, the cash came in — but it wasn't income, it was a loan.
• So paying it back isn't an expense — you're just returning borrowed money.
• Only the interest — the cost of borrowing — is a real expense.

This is exactly how your accountant would treat it, so your books and taxes stay right.

What happens next — Fulkrum splits each payment for you, so you don't have to think about it.