Simple vs Compound Interest
What’s the real difference? Let’s break it down.
What is Simple Interest?
It’s calculated only on the principal amount.
Formula: SI = (P × R × T) / 100
What is Compound Interest?
Interest is added back to principal periodically and earns interest itself.
Formula: A = P(1 + R/100)^T
Example: ₹10,000 @ 10% for 5 years
Simple Interest = ₹15,000
Compound Interest = ₹16,105
Visual Comparison
See how compound interest grows faster.
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