Simply the best
amortization software.

  Order online or call 480-460-9311.

Contact Us |  About Us  |  Policies

How to Order  |  Survey  |  Support

Quick Activation! Use the software today.

 Amortization Software > FREE > Mortgage Calculators
Continuous Interest
Consumer Mathematics with FREE Online Calculator

Continuous interest is when interest is continuously reinvested.

The formula for calculating the accumulated value via continuous interest is as follows:

A = Pert

where A is the accumulated value, P is Principal, r is the annual interest rate, t is time in years.

Example 1  Calculate the interest earned from a $4,500 loan compounded continuously at 5% for 6 years.

Here, P = $4,500, r = 5% = .05, and m = 4 (quarterly).  Over 6-years, there are n = 4*6 = 24 quarters.  The accumulated value is:

A = (4500)[1 + .05/4]24 = 6063.08

I = A - P = 6063.08 - 4500 = 1563.08

Example 2  A savings account pays 4% interest and is compounded daily (365 days).  When will the accumulated value be twice the original principal?

We are solving for n:

2P = P( 1 + .04/365 )n

log 2 = n log (1 + .04/365)

n = log 2 / log (1 + .04/365) = 6325.32

n is the number of periods which for this example, is in days.  It will take 6325 days to double the principal, which is roughly 6325/365 = 17.32 years.

The online calculator below calculates simple interest.

Change the loan amount to the right and then click Calculate.







Compound Interest
Annual Interest Rate  %
Time (in years) 

Interest earned 
Accumulated Value

We ask that if you like this software, that you add one of the following links to your website:

Amortization Software   Generate fixed, variable or interest-only amortization schedules.

Mortgage Calculators   Track loans with ease. Add, edit, or delete to manage irregular payments.



Home     Policies     Corporate     Contact Us   

Copyright 2006-2013 Ruth Technology
A partnership with National Software Incorporated.