Simple interest
Interest paid only on the original amount, never on past interest.
$1,000 at 5% simple interest earns $50 every year forever. Compound interest earns more each year.
See it in action with the Simple vs Compound Interest Calculator.
Interest paid only on the original amount, never on past interest.
$1,000 at 5% simple interest earns $50 every year forever. Compound interest earns more each year.
See it in action with the Simple vs Compound Interest Calculator.