🧮 Calculators

Simple vs Compound Interest

Compare simple and compound interest side-by-side. See exactly how much extra compound earns over time and why it matters for savings.

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Side-by-side comparison

Simple Interest
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Interest earned: -
Compound Interest
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Interest earned: -
Compound earns extra
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Year-by-year breakdown

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How it works

01

Enter Amount

Principal, rate, and time period.

02

Set Frequency

How often compounding happens.

03

See Difference

Total, interest earned, extra from compounding.

Frequently asked questions

What is the difference?
Simple: interest earned only on the original principal. Compound: interest earned on principal + previously earned interest. Over long periods, compound grows dramatically faster.
Simple interest formula?
SI = Principal × Rate × Time. Example: Rs 100,000 at 10% for 5 years = Rs 100,000 × 0.10 × 5 = Rs 50,000 interest. Final: Rs 150,000.
Compound interest formula?
CI = P(1 + r/n)^(nt) - P, where n is compounding frequency per year. Higher n = faster growth. Same example compounded monthly = Rs 164,530 (extra Rs 14,530).
Which is used in real life?
Savings accounts, fixed deposits, mutual funds, retirement accounts almost always use compound. Some short-term loans and bonds use simple. Always check.
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