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Topic
Compounding
6 guides in Finabase Learn
- Annualized return A multi-year return restated as the steady yearly rate that would compound to the same result, making periods comparable.
- Compound interest: how growth on growth builds wealth How compounding works, the formula and the rule of 72, worked tables for lump sums and monthly savings, and how fees, taxes and inflation slow it down.
- DRIP (Dividend Reinvestment Plan) A program that automatically uses cash dividends to buy more shares of the same stock or fund, often in fractions.
- Expense ratios and fund costs: what you pay and how it compounds How a fund’s expense ratio is charged, what a 1% fee costs over 40 years, and the other costs to check: loads, 12b-1 fees, trading costs, spreads and advisory fees.
- Leveraged and inverse ETFs: daily reset math and volatility drag How 2×, 3× and inverse ETFs reset every day, why their long-run returns drift from the multiple, the volatility-drag formula, and what QQQ, TQQQ and SQQQ did since 2021.
- ROCP (rate of change percentage): returns as fractions What ROCP is, how it differs from ROC, why adding or averaging returns misleads, a compounding example on Eli Lilly, and how to use ROCP in Finabase charts.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.