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Simple vs. Compound Interest Calculator

How It Works

You want to earn as much interest as possible on your savings but not pay more than you have to when you borrow. One of the biggest factors in both is whether you’re accruing simple or compound interest.

Simple Interest is calculated annually on the amount you deposit or owe. Compound Interest is when interest earned is added to the principal, forming a new base on which the next round of interest is calculated. This usually accrues daily, monthly, or quarterly.

Enter the starting balance and use the sliders to adjust the monthly contribution, interest rate, and years. The graph will demonstrate the growth of the principal and interest earned/owned with simple interest vs compound interest.

Other Resources

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Your Financial Future Starts Here

When you are faced with life-changing transitions, there are usually some important financial decisions that you will have to make during these times of change. Your financial decisions may significantly impact your financial security in the years, decades or generations to come. When you’re making these important financial decisions, you want sound, objective advice from someone who knows you well. Listerhill Financial Services gives you the personalized, local service you deserve.
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Common FAQs

  • Is Simple or Compound Interest Better?

    It depends on what you need! If you are saving money in an account or being repaid for a loan, compound interest may be a good choice for you.

    If you are borrowing money, you may be able to pay less over time with simple interest.

    (Source: Banzai)

  • How do I know what kind of interest I have?

    If you are not sure what kind of interest your loan has, check your loan documents or contact your lender.

    (Source: Banzai)

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