This continuous compounding calculator finds the future value when interest compounds continuously, the theoretical limit of frequent compounding. Enter principal, rate, and time above.
Formula
A = P × e^(r × t)
Example
$10,000 at 5% for 10 years: A = 10,000 × e^0.5 = $16,487 — slightly more than monthly compounding ($16,470).
When is it used?
Continuous compounding is common in finance and options pricing as a clean mathematical model, using Euler’s number e (about 2.71828).
Good to know
These results are estimates for educational purposes only and are not financial advice. Rates, fees, and terms vary by lender and situation — confirm figures with a licensed professional before making decisions. Last updated: August 2026.
Frequently Asked Questions
How do I calculate continuous compounding?
Use A = P times e to the power of rate times time. It is the limit of compounding as the frequency approaches infinity.
Is continuous compounding higher than monthly?
Slightly. It gives the maximum future value for a given rate, just above daily or monthly compounding.
What is e in the formula?
Euler’s number, about 2.71828, the base of natural logarithms.