compoundedreturn

noun

UK /kəmˈpaʊndɪd rɪˈtɜːn/

US /kəmˈpaʊndɪd rɪˈtɝːn/

The extra money you make when your savings earn money and then that new money earns even more money too.

Thanks to compounded return, her small savings grew into a big amount over ten years.

SYNONYMS

compound interest accumulated return cumulative return reinvested earnings

RELATED WORDS

interest investment savings growth

OTHER MEANINGS

2. The total gain from an investment when profits are added back and earn more over time.

The fund's compounded return over five years was impressive.

3. A growth pattern where each period's earnings build on all earlier earnings.

Compounded return makes money snowball faster than simple interest.

4. The overall result of repeated gains stacking on top of one another.

Investors love compounded return because it rewards patience.