Compound

Quickly check the profitability of compound interest versus simple interest

This application will help you quickly calculate the profitability of your investment if you apply compound interest.

You can also check the calculation of the same investment amount for the same years but with simple interest.

The difference between the two calculations will be displayed so you can check the difference between the two amounts.

Its operation is simple, we introduce the following values:

- Initial Capital: amount of capital that we are going to invest.

- Annual contribution: annual amount that we will include to the capital year after year. If you don't plan to include more, we can leave it to zero.

- Duration: the years that the investment will last.

- Annual profitability: percentage of profitability that we will obtain annually.

Once entered, click on "Calculate" and we will obtain the following amounts:

- Total amount of capital after the end of the investment period at the indicated interest, applying the compound interest formula.

- Final total amount applying the simple interest formula.

- Difference between both amounts, where we can check the profitability that compound interest offers.