Compound Interest

What is compound interest?

Compound Interest Definition: Compound interest is calculated on the amount of a principal on a deposit, such as a savings or investment account or a loan, and the accumulated interest. Also known as compounding interest, this differs from simple interest, which is solely calculated on the principal.

In contrast, compound interest adds together the previous amount of interest calculated and the principal to arrive at the amount. The longer a principal amount accumulates interest or the number of periods where interest is calculated and added, the more compound interest is calculated on the total. Over time, this type of interest calculation can yield significant returns on investment.

Jul 30 - Comparewise Business Loan Banner

Other business terms:

Business Loan Help Center

What Are The Types Of Businesses In Canada?
Best Type of Business Finance for Large Businesses
How to Get Business Loans in Canada
How to Get Business Loans in Canada
Survey Junkie
PC Financial World Elite Mastercard
CIBC Dividend Visa Infinite Card
MBNA True Line Gold Mastercard
Scotiabank Gold American Express Card


Didn’t find the information you were looking for?

Send us your questions and we will get back to you.

Car loan?
Personal Loan?

Top deals await you just a short
application away!