## About This Tool

The online Continuous Compounding Calculator is used to calculate the compounding interest and the future value of a current amount when interest is compounded continuously.

## Continuous Compounding Definition

Continuous compounding refers to the situation where we let the length of the compounding period go to 0. It happens when interest is charged against principle and compounds continuously, that is the interest is continuously added to principle to be charged interest again.

## Continuous Compounding Formula

The continuous compounding calculation formula is as following:

FV = PV × e^{rt}

Where:

FV = future value

PV = present value

r = interest rate

t = number of time periods

e = 2.718281828