PRACTICE ／ Calculation Book
Calculation Ledger — Simple and Compound Interest
What is the difference over ten years from a 2-point difference in the interest rate?
When to use When depositing, borrowing, or making a late repayment.
Simple interest accrues only on the principal, while compound interest accrues on the interest as well. For borrowers, the same formula works in reverse: the later the repayment, the more interest accrues on the interest.
Try with your own numbers
Change the values to recalculate instantly. The formula is provided below. For the source of the values, see the reference page.
Input value
Output value
Simple interest after ten years (after n years)（10,000 yen）—
Compound interest after n years（10,000 yen）—
Difference between compound and simple interest（10,000 yen）—
Formula Simple Interest = Principal × (1 + Annual Rate × Number of Years). Compound Interest = Principal × (1 + Annual Rate)^Number of Years
Related Subjects and Practical Skills
P2 P6 Calculation Ledger — Cumulative Fees
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