Learn what compound interest is, how it’s calculated—from annual rates to continuous compounding—and why it’s powerful for savings (and dangerous for debt).

CNBC Select defines compound interest, how it works and ways to take advantage of it if you're looking for a new credit card or somewhere to stash your cash.

Simple interest works in your favor when you borrow money, while compound interest is better for you as an investor.

If you’re an investor looking to understand the benefits of compound interest, consider the example set by the legendary Warren Buffett. The 93-year-old’s net worth has grown to $137 billion over the ...

Simple interest is paid only on the principal of an investment or loan. Compound interest is calculated on both the initial principal and accumulated interest. Over time, compound interest generally ...

Whether you are paying interest or being paid interest, it's important to fully understand how that interest is calculated. There are two basic types of interest: simple and compound. How each type is ...

You might have heard people use the term compound interest, but if you can’t answer the question “What is compound interest?” then you’re missing out on how compound interest affects your finances.

Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice. Some of the products promoted are from our affiliate partners from ...

Q: What is the difference between simple interest and compound interest? My mortgage loan merely states I have to pay 8 percent interest. My loan is from a doctor’s retirement fund, and I believe I am ...

In the real world, simple interest is rarely used. When you deposit money into an interest-bearing account, or take out a line of credit, the interest that accumulates is added to the principal, and ...

If you want to get the most return on money you save or invest, you want compound interest. The two types of interest are simple and compound. Simple interest is paid only on the money you save or ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Michael Boyle is an experienced financial ...