Calculate SI and CI instantly — compare both and see yearly breakdown
| Year | SI Amount (₹) | CI Amount (₹) | Difference (₹) |
|---|
More tools from Investment Calculators
Simple Interest is calculated only on the principal amount, while Compound Interest is calculated on the principal plus accumulated interest. Compound interest grows faster over time — this is why Albert Einstein called it the "eighth wonder of the world".
Simple Interest: SI = P × R × T / 100 | Compound Interest: CI = P × (1 + R/n)^(n×T) - P where P = Principal, R = Rate per annum, T = Time in years, n = Compounding frequency per year.
Where is simple interest used in India?
Simple interest is used in short-term personal loans, vehicle loans, and some government schemes. Most bank savings accounts and FDs use compound interest which gives higher returns.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by the interest rate. Example: At 8% interest, your money doubles in 72/8 = 9 years.