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Simple vs compound interest calculator

Simple vs compound interest

Compound interest€32,071.35
Simple interest€22,000.00

Compound interest earns you €10,071.35 more.

With simple interest you only earn on the initial capital; with compound interest, you also earn on the interest already accumulated. The gap grows over time.

This simple vs compound interest calculator compares how your money grows under each method, from an initial capital, an annual rate and a number of years.

The power of compound interest

Reinvesting interest (compound interest) makes a huge difference compared to simple interest over the long run. It’s the foundation of saving and investing: the earlier you start, the more it works for you.

FAQ

What's the difference between simple and compound interest?
Simple interest is always calculated on the initial capital. Compound interest is also calculated on the interest already earned, so growth accelerates over time.
When does the difference matter most?
The longer the term and the higher the interest rate, the bigger the gap. Over a few years there's barely any difference; over decades, compound interest multiplies the result.
Where is compound interest used in real life?
In savings accounts, investment funds, mortgages and any product where interest is reinvested rather than withdrawn — it's the engine behind long-term wealth building.