Simple vs Compound Interest: $5,000 at 3% for 30 Years
Over 30 years, $5,000 at 3% compound interest grows to roughly $12,136 versus $9,500 with simple interest.
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.
Compare 30-year growth of $5,000 at 3% under both simple and compound interest methods.
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.