Continuous Compound Interest Calculator
Calculate Future Value
Solve for Required Rate
Solve for Time
Formula
Future Value = P x e^(rt)
Required Rate = ln(FV/P) / t
Time = ln(FV/P) / r
where e = 2.71828...
Frequently Asked Questions
What is continuous compounding?
Continuous compounding is the mathematical limit of compounding frequency, where interest is compounded infinitely often. It uses the formula A = Pe^(rt), where e is Euler's number (approximately 2.71828). It produces slightly more than daily compounding.
Is continuous compounding used in practice?
While no real financial product compounds truly continuously, the concept is used in options pricing (Black-Scholes model), theoretical finance, and as an approximation for very frequent compounding. Some banks compound daily, which is very close to continuous.
What is the Rule of 72?
The Rule of 72 is a quick estimation: divide 72 by the interest rate to find the approximate years to double your money. For continuous compounding, use the Rule of 69.3 (ln(2) x 100 / rate) for a more accurate estimate.
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