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Continuous Compounding Interest Calculator

FINANCE   PERSONAL  
Continuous Compounding Interest Calculator is used to calculate the Continuous Compounding Interest of an amount at a given interest rate and time period
Total Interest Earned:
..
Final Amount:
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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:-

  • P - The original balance or Principal
  • r - Rate of interest
  • t - Time period
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.

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