Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Suzanne is a content marketer, writer, and ...

A simple interest loan calculates the interest based only on the principal you owe. It stands in contrast to a compound interest loan, which calculates interest based on principal and any outstanding ...

Simple interest is more favorable for borrowers due to its non-compounding nature. Compound interest benefits investors by allowing earnings to also generate returns. Invest in avenues like stocks ...