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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Each chase should add to your personal and professional compound interest. Mike Cangi, Forbes.com, 5 Aug. 2025 An item on compound interest stumped 71% of consumers. Daniel De Visé, USA Today, 24 July 2025 Students who graduate understanding compound interest become the investors backing tomorrow's unicorns by 25. Jodie Cook, Forbes.com, 7 July 2025 Investing early in accounts like your 401(k) allows compound interest to work its magic. William Arruda, Forbes.com, 23 June 2025 See All Example Sentences for compound interest

Word History

First Known Use

1660, in the meaning defined above

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

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 20 Aug. 2025.

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!