Interest (Simple/Compound) — Guide
Compare simple vs. compound interest over time.
Estimated reading time: 2 minutes
What it does
Shows how money grows with simple vs. compound interest, helping you understand the power of compounding.
Inputs
- Principal (initial amount)
- Interest Rate (annual)
- Time period
- Compounding frequency
Output
- Interest earned
- Total balance
- Comparison chart
Example
$10,000 at 5% for 10 years → Simple: $15,000, Compound: $16,289
Tip
Start early to maximize compound interest - even small differences in rates matter over time.