Simple Interest vs Compound Interest — Difference (with Table)
Simple Interest vs Compound Interest compared side by side — a 5-row comparison table and 4 key points. Class 6-8 Maths, free and no sign-up.
✓ 100% Free
✓ No Login Needed
✓ NCERT / CBSE Aligned
✓ Download as PDF
TL;DR: Simple Interest vs Compound Interest compared side by side — a 5-row comparison table and 4 key points. Class 6-8 Maths, free and no sign-up.
Written & reviewed by the Syllab.in Academic Team (CBSE/NCERT subject experts) · Updated
🤖 Stuck on any question? Ask Syllab's free AI Tutor for a step-by-step explanation — instant, unlimited, no login.
The main difference between Simple Interest and Compound Interest: Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus accumulated interest.
Simple Interest vs Compound Interest — Comparison Table
| Basis | Simple Interest | Compound Interest |
|---|---|---|
| Calculation | Interest on principal only | Interest on principal and accumulated interest |
| Formula | SI = (P x R x T) / 100 | CI = P(1 + R/100)^T - P |
| Growth | Linear growth | Exponential growth |
| Amount After Interest | A = P + SI | A = P(1 + R/100)^T |
| Returns | Lower returns over time | Higher returns over time |
Key Points
- Simple interest is calculated only on the original principal
- Compound interest is calculated on principal plus previously earned interest
- Simple interest results in linear growth while compound interest results in exponential growth
- Compound interest yields more returns over longer periods