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:
`..`

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.

Calculate the amount of interest earned on a certificate of deposit (CD)

View Tool- May 22, 2018
- Tool Launched

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