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).

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 ...

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 calculates earnings or payments based solely on the initial principal, while compound interest grows by calculating interest on both the principal and the accumulated interest over ...

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.

Interest can be charged when you borrow money or earned when you save. When you charge something on a credit card or take out a loan from a financial institution (student loan, auto loan, mortgage, ...

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 ...

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 ...

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 ...