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.
Running has taught me to have total trust in the compound interest gained from steady day-by-day work. Nicholas Thompson, The Atlantic, 23 Oct. 2025 Over time, compound interest helps turn even modest contributions into meaningful long-term gains. Alejandra Rojas, Forbes.com, 16 Sep. 2025 The power of compound interest To illustrate the power of compound interest, Pabrai shared a compelling historical example during the interview. Dave Smith, Fortune, 15 Sep. 2025 Putting off saving for retirement altogether would mean missing out on that valuable compound interest. Kamaron McNair, CNBC, 29 Aug. 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 9 Nov. 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
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