Continuous Compounding Calculator
Find the continuous-compounding APY (the theoretical ceiling) for any nominal rate, computed in your browser.
APY, effective-rate, and CD figures are computed in your browser; we never see your account balances.Try: Nominal APR=5 → 5%, 5.1271%
How to use
Enter a nominal APR and the calculator returns the effective APY if interest were compounded at every instant. The math uses Euler’s number e and runs entirely in your browser.
Continuous compounding is the upper bound — daily compounding gets very close to it in practice.
FAQ
What does “continuous compounding” mean?
It is the idea of interest being added at every instant instead of daily or monthly. The formula uses e (Euler’s number) and gives the highest possible APY for a given nominal rate.
Will any real bank compound continuously?
Almost none do it literally, but some use daily compounding, which is very close. Continuous is mostly a useful ceiling for comparison. — By Alex Chen, personal finance editor
How much higher is continuous than daily?
For a 5% nominal rate, continuous APY is about 5.127% versus roughly 5.126% daily — the difference is negligible in practice.