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

In many ways, interconnected debt is the organizational equivalent of compound interest. — Doug Shannon, Forbes.com, 17 July 2026

If Musk hadn’t gotten there, someone else would have, thanks to the magic of compound interest, if nothing else. — Annie Lowrey, The Atlantic, 6 July 2026

Most card issuers compound interest daily, so carrying a balance month after month can easily lead to financial hardship. — Elizabeth Gravier,dan Avery, CNBC, 30 June 2026

In agriculture, time is compound interest in reverse. — John W.h. Denton Ao, Fortune, 6 June 2026

Word History

First Known Use

1660, in the meaning defined above

Rhymes for compound interest

• noninterest

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 also:

interest sense 5