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 small goal is like compound interest toward a dream goal. — Doug Melville, Forbes.com, 4 July 2026 That’s thanks to a concept in finance known as compound interest. — Elisabeth Buchwald, CNN Money, 8 Dec. 2025 Prepare to unlock the power of compound interest. — Veronica Bravo, USA Today, 5 Jan. 2026 In agriculture, time is compound interest in reverse. — John W.h. Denton Ao, Fortune, 6 June 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 7 Jul. 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
Last Updated: - Updated example sentences
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