Interest Expense vs Revenue

    Federal net interest payments as a share of total receipts. Rising debt service costs reduce the fiscal space available for discretionary spending, defense, and entitlements.

    FRED
    Treasury
    Updated 2025-09-30

    About this data

    Federal interest expense is now the fastest-growing line item in the budget and on track to exceed defense spending within the current fiscal year. It's driven by two compounding forces — the stock of debt outstanding and the weighted-average interest rate the Treasury pays on it — so even small rate moves translate into large dollar moves. The data on this dashboard comes directly from the Treasury Fiscal Data API, paired with total federal receipts so the ratio of interest expense to revenue is visible alongside the absolute dollar figure.

    Net Interest Expense
    FRED
    $970B▲ 0.6pp YoY
    FY2025
    Share of Revenue
    FRED
    18.5%
    $970B of $5.24T
    Total Receipts
    FRED
    $5.24T
    FY2025
    Peak Interest Share
    FRED
    18.5%
    FY2025 — historical maximum

    Interest Expense as Share of Federal Revenue

    Net interest payments vs total receipts by fiscal year — share % on right axis

    FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025$0M$1.50T$3.00T$4.50T$6.00T0%5%10%15%20%
    • Net Interest
    • Total Receipts
    • Interest / Revenue %

    Revenue After Debt Service

    Total receipts minus net interest — what's left for everything else

    FY2015FY2017FY2019FY2021FY2023FY2025$0M$1.50T$3.00T$4.50T$6.00T
    • Available Revenue
    • Net Interest

    Annual Growth Rates

    Year-over-year change in interest expense vs revenue

    FY2015FY2017FY2019FY2021FY2023FY2025-15%0%15%30%45%
    • Interest Growth %
    • Revenue Growth %

    Annual Data

    Fiscal YearNet InterestTotal ReceiptsShare %Available Revenue
    FY2025$970B$5.24T18.5%$4.27T
    FY2024$880B$4.92T17.9%$4.04T
    FY2023$658B$4.44T14.8%$3.78T
    FY2022$476B$4.90T9.7%$4.42T
    FY2021$352B$4.05T8.7%$3.69T
    FY2020$345B$3.42T10.1%$3.08T
    FY2019$375B$3.46T10.8%$3.09T
    FY2018$325B$3.33T9.8%$3.00T
    FY2017$263B$3.32T7.9%$3.05T
    FY2016$240B$3.27T7.3%$3.03T
    FY2015$223B$3.25T6.9%$3.03T
    FY2014$229B$3.02T7.6%$2.79T

    Fiscal Stress Index

    Composite score (0–100) combining debt-to-GDP ratio (40% weight), interest expense share of receipts (35%), and deficit-to-revenue ratio (25%). Normalized against full historical range. Higher = greater fiscal pressure.

    Fiscal Stress Score
    Composite
    76.6 / 100▲ 2.8pts YoY
    Critical risk — FY2025
    Debt-to-GDP
    FRED
    122.6%
    Weight: 40% — norm score 87
    Interest / Revenue
    FRED
    18.5%
    Weight: 35% — norm score 100
    Peak Stress Score
    Historical
    76.6
    Critical — FY2025

    Fiscal Stress Index Over Time

    Composite score with historical risk bands — Low (<25), Moderate (25–50), Elevated (50–75), Critical (>75)

    FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY20250255075100
    • Fiscal Stress Score
    Low (<25)
    Moderate (25–50)
    Elevated (50–75)
    Critical (>75)

    Stress Index Components (Normalized)

    Individual components scaled 0–100 against historical range — shows which factors are driving fiscal pressure

    FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY20250255075100
    • Debt/GDP (40%)
    • Interest Share (35%)
    • Deficit Ratio (25%)
    • Composite
    FRED series: FYOINT (net interest), FYFR (total receipts), GFDEGDQ188S (debt/GDP), FYFSD (deficit) · Composite indexSource: U.S. Treasury, Bureau of the Fiscal Service, Bureau of Economic Analysis

    Key Terms

    Frequently asked questions

    How much interest does the US pay on the national debt?

    Gross interest on the federal debt has risen from roughly $400 billion per year in the 2010s to over $1 trillion per year as of 2024, driven by both the growing debt stock and the rise in interest rates since 2022. 'Net interest' (what Treasury actually pays out after receiving interest on its own assets) has passed $800 billion annually.

    What share of federal revenue goes to interest payments?

    Interest now consumes more than 15% of federal receipts — up from 6–8% through most of the 2010s. CBO projections show net interest exceeding defense spending within a few years and continuing to grow as the debt stock is refinanced at today's higher yields.

    Why is interest expense projected to grow?

    Two factors compounding: the debt stock keeps growing as annual deficits add to it, and the average interest rate paid on that debt is rising as low-yield bonds issued in the 2010s and early 2020s mature and are rolled into today's higher-coupon securities. Both trends are expected to persist under current fiscal and monetary conditions.