Enter principal, rate, and time to compare Simple Interest vs Compound Interest. View final amount, interest earned, and year‑wise growth with a clear chart.
The lines show year‑end totals for Simple Interest vs Compound Interest based on your inputs and chosen compounding frequency.
Choose principal, annual interest rate, and time. For compound interest, select compounding frequency to see how compounding changes outcomes.
Use the header or menu currency option (USD, INR, GBP) to format values in your preferred currency display.
Set principal amount, annual interest rate, and investment/loan duration in years.
Select how often interest compounds to model realistic savings accounts, deposits, bonds, or loan terms.
Review the chart, final totals, interest earned, and the year‑wise breakdown to understand compounding impact.
Simple interest is calculated only on the original principal. The interest amount added each year is constant, so growth is linear over time.
Compound interest is calculated on the principal plus accumulated interest. As interest is added to the balance, future interest is earned on a larger base, which can accelerate growth.
Simple interest uses: I = P × r × t and A = P + I, where P is principal, r is annual rate (decimal), and t is time in years.
Compound interest uses: A = P × (1 + r/n)^(n×t), where n is the number of compounding periods per year. Interest earned is A − P.
Evaluate deposits, savings accounts, bonds, or loans by comparing simple vs compound outcomes under the same rate and time.
The chart and year‑wise schedule visualize how compounding accelerates growth over time.
Use the difference metric to estimate how much extra growth compounding can deliver for long‑term goals.
For debt, compounding can increase cost—use this comparison to understand the mechanics behind total payable growth.
Compare, plan, and forecast with calculators built for real‑world finance.