By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Cookie Policy for more information.

Compound Interest

Compound interest is the interest that is paid on the original principle of a loan and the unpaid interest that has accrued. For any type of investments, compound interest is the principle that allows a positive ‘snowball’ effect, allowing the investor to start gaining much more in time.

Compound interest is very important for long-term investment gains, so understanding it is key for a fruitful investment strategy. 

Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods.

"Interest on interest," or the power of compound interest, is believed to have originated in 17th-century Italy. It will make a sum grow faster than simple interest, which is calculated only on the principal amount.

For the purposes of calculating ROI on an ongoing investment, interest can be compounded on any given frequency schedule, from continuous to daily to annually.

Extra reading:

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

https://www.investopedia.com/terms/c/compoundinterest.asp

https://www.nerdwallet.com/banking/calculator/compound-interest-calculator 

What’s the Best Way to Invest 5K Today for Beginners?

You are ready to start your investing journey. But what's the best way to invest 5K today so you get a consistent return with very low risk? Find out here.

Have any questions?

If you have any other questions please feel free to reach out to us using the contact us page.

Customer Support
MetaWealth logo

Next Generation
Investments.
For Everyone.

MetaWealth InstagramMetaWealth twitterMetaWealth facebookMetaWealth LinkedinMetaWealth tiktokMetaWealth app Telegram
Invest
Why MetaWealth™?How Investments WorkInvestment Portfolio
MetaWealth™ Newsletter
Subscribe to our newsletter
Thank you for subscribing to our newsletter!
Oops! Something went wrong while submitting the form.

The MetaWealth™ platform is operated by MetaWealth™ International, which is not a registered broker-dealer or investment advisor. MetaWealth™ does not provide investment advice, endorsement or recommendations with respect to any properties listed on the platform. Nothing on the platform, website or application should be construed as an offer to sell, solicitation of an offer to buy or a recommendation in respect of a security. You are solely responsible for determining whether any investment, investment strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. It’s important to remember that the value of any investment can go up or down. You should consult with licensed legal professionals and investment advisors for any legal, tax, insurance or investment advice before making an investment decision. A financial advisor can help you to understand your financial goals and risk tolerance, and provide guidance on the best investment opportunities for you. MetaWealth™ does not guarantee any investment performance, outcome or return of capital for any investment opportunity posted on this site. MetaWealth™ is under no obligation to maximise profits. Our primary commitment is to safeguard investor capital and strive to deliver on projected returns. By investing, participants agree to relinquish any claims to profits or returns beyond those expressly projected and realised, as stated herein. By accessing the platform including web site and application, any pages thereof, you agree to be bound by the Terms of Service and Privacy Policy.