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reference

Compound vs Simple Interest Comparison

Compound vs simple interest table over 1–30 years.

Simple interest applies only to the original principal. Compound interest reinvests earnings. The gap widens dramatically over long horizons.

$10,000 principal at 7% annual rate — simple vs compound (monthly)

YearsSimple Interest (7%)Compound Interest (7%, monthly)Difference
1$10,700$10,723$23
5$13,500$14,176$676
10$17,000$20,097$3,097
20$24,000$40,387$16,387
30$31,000$81,007$50,007

Rule of 72

Divide 72 by the annual rate to estimate years to double: at 7%, money doubles in roughly 72/7 ≈ 10.3 years with compound interest.

Frequently asked questions

How do I use this Compound Interest reference?

Find your category or range in the table, then use the linked calculator to compute an exact value for your inputs.