Continuous Compound Interest Calculator

Calculate ending value and interest with continuous compounding. FV = P x e^(r t).

Use the Continuous Compound Interest Calculator

Enter principal, annual rate, and time in years. Ending value and interest with continuous compounding are calculated.

Inputs

Principal, annual rate (%), and time in years. Interest compounds continuously.

Results

Ending value
$16,487
Interest earned
$6,487

Continuous compounding: FV = P x e^(r x t). Slightly higher than finite compounding for the same nominal rate.

How this calculator works

FV = Principal x e^(rate x time). The constant e is about 2.718. Rate is in decimal (e.g. 5% = 0.05).

How to interpret your results

Continuous compounding gives the theoretical maximum for a given rate and time. Compare to daily or monthly to see the small difference.

Common mistakes to avoid

Using rate as percentage (e.g. 5 instead of 0.05) in the formula; or expecting your bank to use continuous compounding.

FAQs

What is continuous compounding?
Interest is compounded an infinite number of times per year. Formula: FV = P x e^(r t). Slightly higher than daily compounding for the same rate.
Which inputs matter most?
Principal, annual rate (%), and time in years. All three drive the result.
When is it used?
In theory and in some financial models (e.g. option pricing). Most accounts use daily or monthly compounding.
How accurate are the results?
The math is exact. Real accounts use finite compounding.

Related tools

Continuous Compound Interest Calculator

Calculate ending value and interest with continuous compounding. FV = P x e^(r t).

Use the Continuous Compound Interest Calculator

Enter principal, annual rate, and time in years. Ending value and interest with continuous compounding are calculated.

Inputs

Principal, annual rate (%), and time in years. Interest compounds continuously.

Results

Ending value
$16,487
Interest earned
$6,487

Continuous compounding: FV = P x e^(r x t). Slightly higher than finite compounding for the same nominal rate.

How this calculator works

FV = Principal x e^(rate x time). The constant e is about 2.718. Rate is in decimal (e.g. 5% = 0.05).

How to interpret your results

Continuous compounding gives the theoretical maximum for a given rate and time. Compare to daily or monthly to see the small difference.

Common mistakes to avoid

Using rate as percentage (e.g. 5 instead of 0.05) in the formula; or expecting your bank to use continuous compounding.

FAQs

What is continuous compounding?
Interest is compounded an infinite number of times per year. Formula: FV = P x e^(r t). Slightly higher than daily compounding for the same rate.
Which inputs matter most?
Principal, annual rate (%), and time in years. All three drive the result.
When is it used?
In theory and in some financial models (e.g. option pricing). Most accounts use daily or monthly compounding.
How accurate are the results?
The math is exact. Real accounts use finite compounding.

Related tools