๐ฐ Simple vs Compound Interest
Compare simple and compound interest side by side with a live chart and year-by-year table.
Simple vs Compound Interest
Simple interest is calculated only on the original principal each period. Compound interest adds earned interest back to the principal, so future interest grows on a larger base โ creating a snowball effect over time.
Simple: A = P ร (1 + r ร t)
Compound: A = P ร (1 + r/n)^(nt)