Difference between Simple Interest & Compound Interest

Last updated at August 14, 2026 by

2.jpg

 

Remove Ads

Transcript

Difference between Simple Interest & Compound Interest Simple Interest In simple interest, interest for all years is same. SI is smaller than CI Formula is Interest = (𝑃 × 𝑅 × 𝑇)/100 Interest is on Principal amount only. Compound Interest In compound interest, interest for all years is different. CI is larger than SI Formula is Amount = P (1+𝑅/100)^𝑛 Interest is on previous interest as well as the principal amount.

Davneet Singh's photo - Co-founder, Teachoo

Made by

Davneet Singh

Davneet Singh is an IIT Kanpur graduate and has been teaching for 16+ years. At Teachoo, he breaks down Maths, Science and Computer Science into simple steps so students understand concepts deeply and score with confidence.

Many students prefer Teachoo Black for a smooth, ad-free learning experience.