# Compounding Frequency

*Borrowing & Credit — Finicade finance glossary*

How often interest is added — yearly, monthly, daily or continuously. The more often it compounds, the faster money grows (or debt balloons), which is why the same headline rate can mean different real costs.

**Related terms:** [Compound Interest](https://finicade.com/glossary/compound-interest), [EAR (Effective Annual Rate)](https://finicade.com/glossary/ear), [Continuous Compounding](https://finicade.com/glossary/continuous-compounding)

**Taught in:** Math Masters — Why e? The Limit of Compounding

Source: https://finicade.com/glossary/compounding-frequency