compound interest


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

Example Sentences

Recent Examples on the Web There are college-specific side hustles to take up, wise mentors to be found, and thanks to the years ahead of you, lots of compound interest to be earned on your savings and investments. Hannah Oh, Seventeen, 18 Nov. 2022 According to the World War Adjusted Compensation Act, a maximum of $625 plus compound interest per veteran was set. Shannon Bow O'brien, The Conversation, 10 Nov. 2022 Steady employment, compound interest, didn’t divorce, ... David Harsanyi, National Review, 27 Oct. 2022 The magic of compound interest will do the rest and your initial deposit will grow over time. Ivana Pino, Fortune, 26 Oct. 2022 The idea of building wealth is investing monthly by being able to benefit from compound interest, which is making interest on interest so your money makes interest, and that interest is being reinvested. Jasmine Browley, Essence, 23 Oct. 2022 Your money will grow thanks to the magic of compound interest. Ivana Pino, Fortune, 28 Sep. 2022 And never, ever underestimate the importance of compound interest. Sarah Todd, Quartz, 30 Aug. 2022 The magic of compound interest, transforming a pittance into a fortune—has always provoked both awe and fury. Adam Rowe, WSJ, 12 Aug. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'compound interest.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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.” Dictionary, Merriam-Webster, Accessed 6 Dec. 2022.

Kids Definition

compound interest


: 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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