Continuous Compounding Calculator
FinanceCalculate the future value of an investment with continuous compounding, the theoretical limit of compounding frequency.
Future Value
Your balance after continuous compounding -- the theoretical maximum growth for a given rate and term.
Interest Earned
$304.13
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Creators
Odeh Ahwal0people find this calculator helpful
Views
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Saved
Embeds
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Frequently Asked Questions
How is continuous compounding calculated?
FV = PV x e^(r x t), where e is Euler's number (~2.71828), r is the annual interest rate, and t is time in years. This represents compounding an infinite number of times per year -- the mathematical limit as compounding frequency increases.
How much more does continuous compounding earn than monthly compounding?
The difference is typically small in practice (a fraction of a percent), since monthly compounding already captures most of the benefit of frequent compounding -- continuous compounding is mainly a theoretical/modeling tool in finance rather than a real product feature.
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