Definition
Compound Interest, /ˈkɒmpaʊnd ˈɪntrɪst/ (UK), /ˈkɑːmpaʊnd ˈɪntrɪst/ (US), is the interest calculated on the initial principal and also on the accumulated interest from previous periods.
Example
Compound interest has the potential to steadily grow savings and investments, but if used with debt, it can significantly escalate the total amount owed over time.