Continuous Compounding Interest Calculator

Total Interest Earned:

..

Final Amount:

..

Background Information

What does Continuous Compounding mean?: Continuous Compounding of interest means the principal is constantly earning interest. It occurs when interest is charged against the principal and compounds continuously.

Formula

Continuous Compounding = P * e^rt

Where:-

Example

Suppose an account has a balance of $1000 and the rate is 10% p.a. To calculate the ending balance after a span of 2 years;

It can be shown as $1000 times e(.2) and will return a balance of $1221.40 after the two years.

History