Get a Unique Tax Reference for free with Earnr. Click to get started!

Compound Interest


The interest on a loan/deposit calculated based on the initial principle and accumulated interest from previous periods.


Example:

Take a £100 and put it in an account with annual interest rate of 2% AER/Gross. In the first year, you would earn £2, however in the following year you would earn more even if the rate stays the same because compound interest will come in effect.

Back to Taxionary

You might also like...

decorative image for a blog
January 4, 2021
Earnr

Welcome to earnr 👋

Our first post on our blog! We can't wait to show you what's next

Read more
decorative image for a blog
August 9, 2022
Self employed

How Earnr creates a steady income for Etsy sellers

Here’s how Earnr helps Etsy sellers organise their income and pay themselves a regular salary

Read more
decorative image for a blog
August 9, 2022
Self employed

How Etsy sellers are adapting to a post lockdown economy

As part of our interest in supporting Etsy sellers, we’ve been doing some digging into the current state of the Etsy world as lockdown becomes more and more a thing of the past.

Read more
Download earnr