Simple interest is calculated annually on the amount you deposit. Compound interest (which can accrue daily, monthly, or quarterly) is added to your principal, forming a new base on which you earn the next round of interest. This calculator will demonstrate the difference between the simple and compound interest rates.
Enter the starting balance and use the sliders to adjust the monthly contribution, interest rate, and years. The graph will demonstrate the growth of the principal with simple interest vs compound interest.
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