Simple & Compound Interest

Input Investment / Loan Parameters

Asset Growth Simulation (Simple vs Compound)

Calculation Steps

💡 Fundamental Formulas of Interest Calculation

Simple Interest: Interest is calculated only on the initial principal. $A = P(1 + rt)$
Compound Interest: Interest is added to the principal at each interval, yielding interest on interest. $A = P \left(1 + \frac{r}{n}\right)^{nt}$
(where $P$: Principal, $r$: Annual Rate (decimal), $t$: Term in years, $n$: Compounding intervals per year)