⚖️ Side-by-Side Interest Growth Comparison
Simple vs Compound Interest Calculator
See the dramatic difference between simple and compound interest with year-by-year growth tables.
Presets:
$10k @ 7% for 10yr
$5k @ 5% for 20yr
$1k @ 10% for 30yr
📐 Simple Interest
$17,000.00
Interest earned: $7,000.00
📈 Compound Interest
$20,096.61
Interest earned: $10,096.61
Compound Advantage
$3,096.61 more (+44.24%)
Year-by-Year Growth Comparison:
| Year | Simple Balance | Simple Interest | Compound Balance | Compound Interest | Difference |
|---|
Simple Interest vs Compound Interest Formulas
- Simple Interest: $A = P(1 + rt)$ where $P$ = principal, $r$ = annual rate, $t$ = time in years. Interest is linear — the same amount each year.
- Compound Interest: $A = P\left(1 + \frac{r}{n}\right)^{nt}$ where $n$ = compounding frequency per year. Interest grows exponentially because each period's interest is added to the principal.