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Continuous Compounding Calculator

Work out continuous compounding instantly with clear inputs, formula shown and shareable results.

About Continuous Compounding Calculator

Continuous compounding is the limit as compounding frequency goes to infinity, giving A = Pe^(rt). It is the standard convention in derivative pricing because it makes rates additive across periods.

Formula

Continuous growth

A = P·e^(rt); EAR = e^r - 1

r
Continuous rate
t
Years

Worked example

With the default values below, Continuous Compounding Calculator returns Value With Continuous Compounding of $556,385.23. Change any input above and every figure here is recalculated in your browser.

Inputs used

Principalminimum 0
250,000
Annual Rateaccepts 0–100 %
8 %
Yearsaccepts 0.25–60
10

Results

Value With Continuous Compounding
$556,385.23
Interest Earned
$306,385.23
Effective Annual Rate
8.3287%
Extra Versus Monthly Compounding
$1,475.17

Step by step

  1. 1Values used
  2. 2Continuous growth
  3. 3Value With Continuous Compounding= 556,385.23
  4. 4Interest Earned= 306,385.23
  5. 5Effective Annual Rate= 8.3287
  6. 6Extra Versus Monthly Compounding= 1,475.17

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

Do real deposits compound continuously?

No, but it is a clean upper bound and the natural convention for modelling.

How much more is it worth than monthly?

Very little — at 8% the difference is around 0.03 percentage points of annual yield.

Related Calculators

Continuous Compounding Calculator | Calcrivo