The Continuous Compounding Calculator is used to calculate the compounding interest and the future value of a current amount when interest is compounded continuously.
Continuous Compounding Definition
Continuous compounding refers to the situation where we let the length of the compounding period go to 0. It happens when interest is charged against the principle and compounds continuously; that is the interest is continuously added to the principle to be charged interest again.
Continuous Compounding Formula
The continuous compounding calculation formula is as follows:
FV = PV × ert
Where: FV = future value PV = present value r = interest rate t = number of time periods e = 2.718281828