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Compare simple gross interest with a compounded balance using an annual equivalent rate.
Last reviewed
Compounded gross interest
£400.00
The same numeric annual rate is used for both comparisons; no contributions or withdrawals are made.
Simple interest multiplies the deposit by the annual rate and fraction of a year. The compounded comparison raises one plus AER to the years held.
Deposit (£): 10000; Annual rate / AER (%): 4; Months: 12
Compounded gross interest: £400.00
The result depends on the following. If any of them do not match your situation, treat the figure as indicative only.
Simple interest multiplies the deposit by the annual rate and fraction of a year. The compounded comparison raises one plus AER to the years held.
Inputs are processed locally. Displayed amounts are rounded; the calculation retains precision.
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Yes. Enter the number of months. Actual bank interest may use daily balances and a specific day-count convention.
Please note: Results are estimates for general information only and are not financial, tax or legal advice. Figures depend on the assumptions listed on each page and on your personal circumstances.
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