compound interest

noun

: interest computed on the sum of an original principal and accrued interest

Examples of compound interest in a Sentence

Recent Examples on the Web Most lenders use simple interest to calculate payments on a HELOC, rather than compound interest (where interest builds on top of interest). Kelsey Neubauer, CNBC, 29 Oct. 2024 Because time is the most powerful driver of returns, especially when combined with the power of compound interest. Gianluca Sidoti, Forbes, 21 Oct. 2024 Make sure to start saving for retirement early so your money has more time to grow with the power of compound interest. Danielle Chemtob, Forbes, 18 Oct. 2024 Making the case for saving and investing Use this opportunity to explain how compound interest works, showing them how even small amounts can grow over time. Winnie Sun, CNBC, 13 Oct. 2024 See all Example Sentences for compound interest 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'compound interest.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1660, in the meaning defined above

Time Traveler
The first known use of compound interest was in 1660

Dictionary Entries Near compound interest

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 5 Nov. 2024.

Kids Definition

compound interest

noun
: interest paid or to be paid both on the principal and on accumulated unpaid interest

Legal Definition

compound interest

see interest sense 5

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!