English Reference
Noun

compounding

n. uncountable
C1 Advanced US /kəmˈpaʊndɪŋ/ UK /kɒmpˈaʊndɪŋ/ com·pound·ing

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.


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'.

She views underdevelopment and disasters in the region as cyclical problems, compounding one another.

Al Jazeera· 15 Aug 2026

Insecurity and community mistrust are compounding the problem, with some incidents delaying safe burial teams.

UN News· 13 Aug 2026
This entry
Level C1 · Advanced
Frequency Occasional
Updated