Continuous Compounding Calculator
Calculate the future value of investments with continuous compounding. Determine growth based on principal amount, annual interest rate, and time period.
Step 1: Investment Details
Understanding Continuous Compounding
Continuous compounding calculates interest assuming it’s compounded an infinite number of times per period. It uses the mathematical constant e (≈2.71828) for the most accurate growth calculation.
Step 2: Additional Options
About Continuous Compounding
Continuous compounding represents the theoretical limit of compounding frequency. While most investments compound daily, monthly, or annually, continuous compounding provides the maximum possible growth for a given interest rate.
Continuous Compounding Results
Future Value
Compounding Frequency Comparison
| Compounding Frequency | Future Value | Total Interest | Effective Annual Rate |
|---|
Growth Over Time
Continuous Compounding Formula
A = P × e^(rt)
Where:
A = Future Value
P = Principal Amount
e = Euler’s number (≈2.71828)
r = Annual interest rate (decimal)
t = Time in years
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