Difference between Simple Interest & Compound Interest

Last updated at August 14, 2026 by

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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 = (๐‘ƒ ร— ๐‘… ร— ๐‘‡)/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+๐‘…/100)^๐‘› Interest is on previous interest as well as the principal amount.

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