Word
compounding
Phoneticscom·pound·ing, stress on the second syllable
US/kəmˈpaʊndɪŋ/
UK/kɒmpˈaʊndɪŋ/
Uncountable noun
Definition
n. the process of things adding up over time so they grow faster and faster. You often hear this when talking about money or interest.
n. the process by which the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.
Examples
“Compounding helps your small savings grow into a large amount.”
“The real power of a retirement fund comes from decades of compounding interest rather than the initial deposit.”
“While often discussed in finance, the principle of compounding applies equally to habit formation, where small daily improvements accumulate into significant long-term transformations.”
Examples
simple
“Compounding helps your small savings grow into a large amount.”
contextual
“The real power of a retirement fund comes from decades of compounding interest rather than the initial deposit.”
complex
“While often discussed in finance, the principle of compounding applies equally to habit formation, where small daily improvements accumulate into significant long-term transformations.”
Usage
Often functions as a gerund-noun; frequently paired with 'interest' or 'effect'.
Real-World Examples
“She views underdevelopment and disasters in the region as cyclical problems, compounding one another.” “Insecurity and community mistrust are compounding the problem, with some incidents delaying safe burial teams.” Word family
NOUN
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Occasional
- Level
- C1 · Advanced
- Updated
- アルファベット
- 読み方の一覧 →
QR code
englishreference.com/q/compounding