What context can I use each word in?
Learn when and how to use these words with these examples!
recoup
Example
The company hopes to recoup its investment within the next year. [recoup: verb]
Example
The team managed to recoup their losses in the second half of the game. [recoup: verb]
compensate
Example
The airline compensated the passengers for the delay with vouchers and free meals. [compensated: past tense]
Example
The company offered to compensate the employee for the extra hours worked. [compensate: verb]
Good things to know
Which word is more common?
Compensate is more commonly used than recoup in everyday language. Compensate is versatile and covers a wide range of contexts, while recoup is less common and refers specifically to recovering losses or expenses.
What’s the difference in the tone of formality between recoup and compensate?
Both recoup and compensate can be used in formal and informal contexts, but recoup is more commonly used in business or financial settings, which may make it sound more formal or technical than compensate.