Continuous Compound Interest Calculator
The continuous compound interest calculator computes interest when compounded infinitely often using A = P*e^(r*t). This is the theoretical maximum for compound interest. In practice, daily compounding is very close to continuous compounding. This calculator also shows the difference between continuous, annual, and monthly compounding, so you can see how much the compounding frequency matters.
Formula
A = P * e^(r*t)
where e ≈ 2.71828 (Euler's number)
Comparison with other compounding methods
Continuous compound interest calculator: frequently asked questions
What is continuous compound interest?
Continuous compound interest assumes interest is compounded infinitely often. The formula is A = P*e^(r*t), where e ≈ 2.71828 (Euler's number), r is the annual rate, and t is time in years.
Is continuous compounding more than daily compounding?
Yes, but only slightly. Daily compounding is very close to continuous compounding. The difference becomes more noticeable for higher interest rates or longer time periods.
When is continuous compounding used?
Continuous compounding is a theoretical model used in mathematics and finance. It is used in option pricing (Black-Scholes model) and other advanced financial calculations.
How much better is continuous than daily compounding?
For most practical purposes, the difference is negligible. For example, at 5% annual rate for 10 years, daily gives 1,648.72 and continuous gives 1,648.72. The difference only becomes significant at very high rates.
What is e?
e (Euler's number) is approximately 2.71828. It is the base of natural logarithms and appears naturally in growth and decay problems.
Official sources
- Wikipedia: Compound Interest.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.