compound growth
Interest earning interest
Compound growth is increase that builds on itself—each period's gain becomes part of the base for the next period's gain.
Unlike simple growth, which adds a fixed amount, compound growth accelerates because you're growing on top of previous growth.
The concept applies to investments, populations, and any quantity that multiplies rather than merely adds: At 7% compound growth, your money doubles in about ten years.
- exponentialIncreasing by constant ratio
- interestAttention, stake, or fee
- snowballCompressed winter precipitation
- accumulationCollected mass over time
- doublingMultiplying by two
reinvestment · multiplying · portfolio · dividends · wealth · wealth building · momentum · accelerating · principal · returns · rate of return · nest egg · time · patience · slow and steady · snowballing · geometric · accruing
- growthincrease, increasing, expansion, expand, expanding
- increasesincrease, rise, gain, boost, hike
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- Growth Metricspercent change, year over year, retention rate, churn rate, attrition rate
- investment metricsalpha, beta, risk, return, yield
- Reinvestmentretained earnings
compound, growth, compounds, compounded, compounding, grow, grows, grown, growing