How to Model Continuous Growth with EXP in Excel

EXP raises e to a power — the engine behind continuous growth, continuous compounding and exponential decay.

You will learn to

• Project continuous growth with EXP
• Convert a continuous rate into an annual rate
• Model exponential decay with a negative exponent

How it works

EXP(number) returns e (about 2.71828) raised to that power. Continuous growth follows start × e^(rate × time), so =B2*EXP(C2*D2) projects a bacterial culture, a population or continuously compounded money.

A negative exponent models decay instead: =B5*EXP(-C5*D5) is how much of a substance remains after time D5. EXP is the inverse of LN, so =EXP(LN(7)) returns 7, and =EXP(r)-1 converts a continuous rate into the equivalent annual rate.

=B2*EXP(C2*D2)