The concept of continuous compounding is used to calculate the amount of interest that will be earned on an account that is constantly compounded. The continuous compound interest formula can handle an infinite number of compounding periods. The continuous compound interest calculator below will help you calculate your compound interest account balance for a future value.
On This Page
- Continuous compound interest formula
- Continuous compound interest formula usage
- Definition of continuous compounding
Continuous compound interest formula
The continuous compounding formula does not compound interest on an monthly or quarterly basis. Instead, the continuous compounding formula will calculate the re-investment of gains for perpetuity. By earning interest on prior interest, one can earn at an exponential rate.
P x ert
Definition of continuous compounding
The process of earning interest on top of interest. The interest is earned constantly, and immediately begins earning interest on itself.