Euler’s Number

Definitionnoun phrase

What is Euler's number (e) in math?

Euler’s number, written e, is an irrational constant approximately equal to 2.71828. It is the number that ( 1 + 1n )n gets closer and closer to as n grows. It is the base of natural exponential growth, ex, and of the natural logarithm, ln x.

In Spanish
número de Euler
Also called
e, the number e, natural base, base of the natural logarithm
Grade level
Algebra 2
Algebra 2PrecalculusCalculusCCSS HSF-LE.A.4SATACT

Euler's Number in a picture

The number e as the limit of (1 + 1/n) to the nBars show (1 + 1/n) to the n for n = 1, 2, 4, 12 and 365: 2, 2.25, 2.441, 2.613 and 2.715. They climb toward a dashed line at e, about 2.71828.2.02.22.42.62.8e ≈ 2.718282n = 12.25n = 22.441n = 42.613n = 122.715n = 365Value of (1 + 1/n)ⁿAs n grows, (1 + 1/n)ⁿ gets closer to e but never passes it.1 dollar at 100 percent interest, compounded n times a year
If 1 dollar earns 100 percent interest compounded n times a year, it grows to ( 1 + 1n )n dollars. More compounding helps less and less: the amounts level off at e.

Formal definition and notation

Euler’s number is the limit of ( 1 + 1n )n as n → ∞. It also equals the endless sum 1 + 11! + 12! + 13! + ⋯, so e ≈ 2.718281828. It is irrational (its decimal never ends or repeats). The function ex is the natural exponential function, and its inverse is the natural logarithm, ln x = loge x.

Symbol Read it as Meaning
e e Euler’s number, about 2.71828
ex e to the x the natural exponential function
ln x natural log of x the logarithm with base e: ln x = y means ey = x
A = Pert A equals P e to the r t the continuous compound interest formula

Key facts

  • e ≈ 2.718281828. Like π, it is irrational, so any decimal is an approximation.
  • Compounding more and more often makes ( 1 + 1n )n creep up toward e: monthly gives about 2.613, daily about 2.715.
  • ex is always positive, passes through (0, 1) and grows faster and faster. In calculus it is the function whose slope at every point equals its own value.
  • ln e = 1 and ln 1 = 0, because e1 = e and e0 = 1.
  • Do not confuse e with the “E” on a calculator screen, which means times a power of 10 in scientific notation.

Formulas with e

Formulas with e
e ≈ 2.71828 A = Pert
A
the final amount
P
the starting amount (principal)
r
the annual rate as a decimal (5 percent is 0.05)
t
the time in years

Use the ex key on a calculator. Keep e exact (write e0.5) until the last step, then round.

Euler's Number examples, step by step

Example 1: Evaluate a power of e

Warm-up

Find e2 to two decimal places.

  1. e2 = e × e, with e ≈ 2.71828.
  2. On a calculator, press ex and enter 2: about 7.389.
  3. Round to two decimal places.

Answer: e2 ≈ 7.39.

Example 2: Continuous compound interest

Core

You deposit 1,000 dollars in an account that pays 5 percent interest compounded continuously. How much is in the account after 10 years?

  1. Use A = Pert with P = 1000, r = 0.05, t = 10.
  2. Exponent: rt = 0.05 × 10 = 0.5.
  3. A = 1000e0.5 ≈ 1000 × 1.64872.
  4. A ≈ 1648.72.

Answer: About 1,648.72 dollars.

Example 3: Solve an equation with e

Test-style

Solve ex = 20. Give x to three decimal places.

  1. The natural log undoes ex: take ln of both sides.
  2. ln (ex) = ln 20, so x = ln 20.
  3. On a calculator, ln 20 ≈ 2.996.
  4. Check: e2.996 ≈ 20.0.

Answer: x = ln 20 ≈ 2.996.

Common mistakes

✗ Mistakee is a variable, so e2 cannot be simplified to a number.
✓ Insteade is a constant, about 2.71828, so e2 ≈ 7.389.

e is a fixed number like π. In A = Pert, the letters P, r and t vary, but e never does.

✗ Mistakee = 2.7 exactly, or e = 2710.
✓ Insteade ≈ 2.71828, and it is irrational.

No fraction equals e, and its decimal never ends. Use the calculator’s e key and round only at the end.

✗ MistakeUsing A = P(1 + r)t when the problem says compounded continuously.
✓ InsteadContinuous compounding uses A = Pert.

P(1 + r)t compounds once a year. Continuous compounding is the limit of compounding more and more often, which brings in e.

Not to be confused with

Euler's Numbervs.Pi

π ≈ 3.14159 comes from circles (circumference divided by diameter). e ≈ 2.71828 comes from growth and compounding. Both are irrational constants.

Euler's Numbervs.Natural logarithm

e is a number. The natural logarithm, ln x, is a function that asks what power of e gives x: ln e3 = 3.

Euler's Numbervs.Scientific notation E

A calculator display such as 3.2E5 means 3.2 × 105. It has nothing to do with Euler’s number.

Quick check: 3 questions

Question 1 of 3

Which is the best approximation of e?

Show answer and explanation

Answer: B. e ≈ 2.71828. 3.14159 is π, 1.61803 is the golden ratio, and 2.5 is too rough.

Question 2 of 3

What is ln (e4)?

Show answer and explanation

Answer: D. The natural logarithm undoes ex, so ln (e4) = 4. The other choices treat ln as multiplication or forget that it reverses the exponent.

Question 3 of 3

5,000 dollars is invested at 3 percent compounded continuously. To the nearest dollar, what is it worth after 8 years?

Show answer and explanation

Answer: C. A = 5000e0.03 × 8 = 5000e0.24 ≈ 6356. 6,200 is simple interest, 6,334 is yearly compounding, 5000(1.03)8, and 5,150 is only one year of interest.

Euler's Number: frequently asked questions

Why is e called the natural base?

Because it shows up on its own whenever something grows at a rate proportional to its size: continuous interest, population growth, radioactive decay and cooling. In calculus, ex is the only exponential function whose rate of change equals itself, which makes formulas simplest in base e. Logarithms with base e are therefore called natural logarithms.

What is e equal to?

e ≈ 2.718281828459, and its digits go on forever without repeating, because e is irrational. Two exact ways to describe it are the limit of ( 1 + 1n )n as n grows without bound and the endless sum 1 + 1 + 12 + 16 + 124 + ⋯, whose denominators are factorials.

How do you type e on a calculator?

Most scientific and graphing calculators have an ex key, often the second function of the ln key. To get e itself, enter e1. Do not use the EE or E key, which enters a power of 10 for scientific notation. In spreadsheets, the function EXP(1) returns e.

Practice and tools

Sources

  1. Common Core State Standards, High School Functions, Linear, Quadratic and Exponential Models (HSF-LE.A.4)
  2. OpenStax, Intermediate Algebra 2e, 10.2 Evaluate and Graph Exponential Functions

Updated November 2026·Reviewed by the Effortless Math team·Standards: CCSS HSF-LE.A.4

Cite this entry

Effortless Math Team. “Euler's Number.” Effortless Math Dictionary. Updated November 2026. https://www.effortlessmath.com/math-dictionary/eulers-number/

Flashcard

TermEuler's Numbere ≈ ?
DefinitionAn irrational constant, about 2.71828, the limit of ( 1 + 1n )n. It is the base of ex and of ln x.
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