Simple & Compound Interest
Compare simple vs compound interest growth
Interest comparison
- Simple interest
- ₹40,000
- Compound interest
- ₹48,985
- Extra from compounding
- ₹8,985
How to use
- Enter principal amount, annual rate and years.
- See simple interest and compound interest side by side.
- Notice how compounding grows faster over longer periods.
The formula (in simple words)
Simple interest: SI = P×R×T/100. Compound interest: amount grows by (1 + R/100/n)^(n×T) minus principal, with n compounding periods per year.
Frequently asked questions
You earn interest on interest. Simple interest only pays on the original principal every year.