Simple vs Compound: $100 at 12% for 25 Years
At 12% for 25 years, simple interest yields $400 while compound interest grows $100 to approximately $1,700.
How to use this tool
- Enter principal, annual interest rate and years in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your compound balance and the full breakdown beneath it.
Even a small $100 investment shows a dramatic difference between simple and compound interest over 25 years.
Frequently asked questions
- When do simple and compound give the same result?
- At t = 1 year (with annual compounding) they are identical. Beyond year 1 compound interest always exceeds simple interest for positive rates.
- Which does a bank savings account use?
- Most savings accounts and mortgages use compound interest. Some short-term loans and bonds use simple interest.