Doubling time – continous compounding

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Updated: Aug 20, 2021

Doubling time - continous compounding

An example of the doubling time with continuous compounding formula is an individual would like to calculate how long it would take to double his investment that earns 6% per year, continuously compounded. The individual could either calculate the number of years or calculate the number of months to double his investment by using the annual rate or the monthly rate. Using the doubling time for continuous compounding formula, the time to double at a rate of 6% per year would show In(2) / 0.6.

This equation would return a result of 11.55 years.

Reference: financeformulas.net



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.