📖 Glossary
Financial terms glossary — clear definitions and the right calculator for each concept.
A
- Annual Percentage Rate (APR) — The total yearly cost of borrowing as a percentage, including interest and fees.
C
- CAGR (Compound Annual Growth Rate) — The steady annual rate at which an investment would have grown if it had grown at a consistent pace.
- Compound Interest — Interest calculated on both the principal and previously earned interest — 'interest on interest'.
I
- Inflation — The rate at which prices rise over time, reducing the purchasing power of money.
N
- Net Worth — The difference between everything you own and everything you owe — your financial 'wealth'.
P
- Principal — The original sum of money invested or borrowed, excluding any interest.
R
- ROI (Return on Investment) — A performance measure that calculates the relative gain or loss on an investment relative to its cost.