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Simple vs Compound Interest
Power of compounding — visualised.
Simple Interest
₹1,80,000
Interest: ₹80,000
Compound Interest
₹2,15,892
Interest: ₹1,15,892
Compounding Edge
₹35,892
Extra wealth from compounding vs simple interest
| Year | Simple Total | Compound Total | Difference |
|---|---|---|---|
| 1 | ₹1,08,000 | ₹1,08,000 | ₹0 |
| 2 | ₹1,16,000 | ₹1,16,640 | ₹640 |
| 3 | ₹1,24,000 | ₹1,25,971 | ₹1,971 |
| 4 | ₹1,32,000 | ₹1,36,049 | ₹4,049 |
| 5 | ₹1,40,000 | ₹1,46,933 | ₹6,933 |
| 6 | ₹1,48,000 | ₹1,58,687 | ₹10,687 |
| 7 | ₹1,56,000 | ₹1,71,382 | ₹15,382 |
| 8 | ₹1,64,000 | ₹1,85,093 | ₹21,093 |
| 9 | ₹1,72,000 | ₹1,99,900 | ₹27,900 |
| 10 | ₹1,80,000 | ₹2,15,892 | ₹35,892 |
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