# Exponential Growth Calculator

How much will it grow?

## What Is the Exponential Growth?

Exponential growth, or (when negative) exponential decay is seen in many fields ranging from business and finance to biology and physics.

It is often used for modeling the growth of debt, consumer demand, and production quality.

Also known as:
• Law of uninhibited growth

## Why Is it Important?

• This formula lets businesses predict changes over time.

## Formula(s) to Calculate Exponential Growth

• FINAL AMOUNT = START VALUE * 2.71828^((PERCENT RATE OF GROWTH/100)*NUMBER OF YEARS)

## Common Mistakes

• Not realizing that exponential growth may start out slowly, but will grow quickly.
• Not realizing that nothing can grow without limit. There's always some barrier to growth that shows up eventually.
• Believing that growth will perfectly follow models. In many cases, there will be peaks and valleys.
• Using the improper value for 'e' (Euler's number) which is approximately equal to 2.718.