The word “compound” is indicative of the terms “accumulation” or “addition”. Basically, compound interest is the accumulated interest rate that is calculated on the principal amount and also on the interest rates of the loan amounts of the previous years. The accruement of interest over the frequency of compound interest calculated is what determines how much the interest can come up to. The higher the frequency, the great the compound interest. Calculating compound interest accurately can be quite a task so using a professional calculator can make the job much simpler and help you assess if you should take it up.