Math & Statistics

What Is Exponential Growth?

Exponential growth is growth in which a quantity increases by the same percentage in each period, so the amount added grows larger every time. Compound interest, population growth under ideal conditions, and the spread of information are common examples. It contrasts with linear growth, which adds the same fixed amount each period.

Formula

Final amount = initial amount × (1 + growth rate)^periods. At 10% per period, a value roughly doubles in about 7 periods.

Linear vs. Exponential

Adding 10 each year to 100 gives 200 after 10 years; growing 10% a year gives about 259.

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🔗 Related Terms

Compound Interest Rule of 72 Logarithm Compound Annual Growth Rate (CAGR)

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.