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.
Understanding and harnessing the power of compound interest is the key to financial freedom. — Zev Fima, CNBC, 12 Oct. 2026 Supporters hope the fund could collect enough compound interest in the long-term to eliminate state taxes. — Jack Harvel, Kansas City Star, 8 Oct. 2026 That starts to look less like ordinary content marketing and more like compound interest. — Mat Golubovic, Forbes.com, 2 Sep. 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 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

Rhymes for compound interest

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Browse Nearby Words

compound infusion of senna
compound interest
compound-interest method
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Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 20 Oct. 2026.

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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
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