Simple vs Compound Interest: $10,000 at 7% for 20 Years

At 7% for 20 years, simple interest gives $24,000 while compound interest grows to approximately $38,697.

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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.

Over 20 years at 7%, compounding produces dramatically more wealth than simple interest on the same principal.

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.