Simple Interest vs Compound Interest

Visual side-by-side comparison. See how compounding makes a massive difference over time.

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Simple Interest

Interest: ₹1.00 L

₹2.00 L

Compound Interest

Interest: ₹1.69 L

₹2.69 L

Extra money from compounding

₹68,506

68.5% more returns with compound interest

Year-by-Year Comparison

YearSI Amount (₹)CI Amount (₹)Difference (₹)
11.10 L1.10 L+₹381
21.20 L1.22 L+₹1,840
31.30 L1.34 L+₹4,489
41.40 L1.48 L+₹8,451
51.50 L1.64 L+₹13,862
61.60 L1.81 L+₹20,873
71.70 L2.00 L+₹29,650
81.80 L2.20 L+₹40,376
91.90 L2.43 L+₹53,254
102.00 L2.69 L+₹68,506

Formulas

Simple Interest

SI = P × R × T / 100

Interest calculated only on original principal. Stays same every year.

Compound Interest

A = P × (1 + R/n)^(n×T)

Interest calculated on principal + accumulated interest. Grows exponentially.