The author and editors take ultimate responsibility for the content. The difference between simple interest and compound interest is the way the interest accumulates. Simple interest accumulates ...

Interest can be calculated in two ways: simple interest or compound interest. Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the ...

there is a big difference between the two. Specifically, simple interest is only paid on principal, while compound interest is paid on the principal plus all of the interest that has previously ...

Dive in to learn about the difference between simple interest and compound interest. First, we’ll begin with the basic and brief definitions and formulas of simple and compound interest.