loader image
Real Estate Glossary

Compounding

inflation calculator
Written by Richard Wilson

This refers to a type of calculation wherein interest earned is reinvested, therefore earning additional interest. Over time, it will generate even more interest. Experts describe it as a “snowball effect” because as your wealth grows, your returns grow more rapidly.

This refers to a type of calculation wherein interest earned is reinvested, therefore earning additional interest. Over time, it will generate even more interest. Experts describe it as a “snowball effect” because as your wealth grows, your returns grow more rapidly.

About the author

Richard Wilson