Exponential Growth

Definitionnoun phrase

What is exponential growth?

Exponential growth is an increase by the same percent, or the same factor, in each equal time period, so the amount grows faster and faster. It is modeled by y = a(1 + r)t, where a is the starting amount and r is the growth rate. Growing 10% a year multiplies the amount by 1.1 every year.

In Spanish
crecimiento exponencial
Also called
exponential increase, growth factor model, compound growth
Grade level
Algebra 1
Algebra 1Algebra 2CCSS HSF-LE.A.1.cCCSS HSF-IF.C.8.bSATACTGEDPSATHiSET

Exponential Growth in a picture

Exponential growth compared with linear growthGreen points 100, 150, 225, 337.5, 506, 759 lie on a curve that bends upward, with a times 1.5 label between points. An orange dashed line from 100 to 350 adds 50 each step.xy12345200400600×1.5×1.5×1.5×1.5+50 each step100759time (steps)Exponential: ×1.5 each step. Linear: +50 each step.
Both models start at 100. The linear one adds 50 every step; the exponential one multiplies by 1.5, so its jumps keep getting bigger and it is more than double the linear value by step 5.

Formal definition and notation

A quantity grows exponentially when it can be written as y = a · bt with a > 0 and growth factor b > 1. Writing b = 1 + r shows the growth rate r > 0 per unit of time. Over every interval of the same length the quantity is multiplied by the same factor, so its rate of change is proportional to its current size. Continuous growth is written y = aekt with k > 0.

Symbol Read it as Meaning
a a the initial amount, at t = 0
r r the growth rate as a decimal (8% is 0.08)
1 + r one plus r the growth factor b, greater than 1
a · 2td a times 2 to the t over d doubling form: the amount doubles every d time units

Key facts

  • Equal time steps give equal ratios, not equal differences: 100, 150, 225, 337.5 has ratio 1.5 each time.
  • Any growth factor above 1 is exponential growth: 1.02 (2% per period), 2 (doubling), 3 (tripling).
  • The amount added each period gets bigger, because each percent is taken of a bigger amount.
  • Exponential growth always overtakes linear growth in the end, even when the linear one starts faster.
  • Doubling time: if a quantity doubles every d units, then y = a · 2td.
  • Growth and exponential decay are the same model; only the factor changes, b > 1 versus 0 < b < 1.

Exponential growth formula

Exponential growth formula
y = a(1 + r)t
y
the amount after t time periods
a
the starting amount
r
the percent growth per period, written as a decimal
t
the number of periods

The factor is 1 + r, not r: 6% growth means multiplying by 1.06 each period. For money, this formula becomes compound interest.

Try it: grow by 25% each step

Interactive

The machine multiplies by the growth factor 1.25, which is 25% growth. It has already run 80 and 100. Type the newest output back in and press Run to see each jump get bigger than the last.

This interactive needs JavaScript. The worked examples below show the same ideas step by step.

Exponential Growth examples, step by step

Example 1: Doubling

Warm-up

A bacteria culture starts with 500 cells and doubles every 3 hours. How many cells are there after 12 hours?

  1. Number of doublings: 12 ÷ 3 = 4.
  2. Multiply by 2 four times: 500 · 24.
  3. 500 · 16 = 8000.

Answer: There are 8000 cells after 12 hours.

Example 2: Percent growth

Core

A town of 1200 people grows 5% per year. Write the model and find the population after 10 years.

  1. Growth factor: 1 + 0.05 = 1.05.
  2. Model: P(t) = 1200(1.05)t.
  3. After 10 years: 1200(1.05)10 ≈ 1200 × 1.6289.
  4. ≈ 1954.7, so about 1955 people.

Answer: The model is P(t) = 1200(1.05)t; after 10 years the population is about 1955 people.

Example 3: Read the rate from the model

Test-style

The number of app users is U(t) = 4500(1.18)t, with t in months. By what percent does the number of users grow each month, and how many users are there at the start?

  1. Match the form a(1 + r)t: a = 4500 and 1 + r = 1.18.
  2. So r = 0.18, which is 18% per month.
  3. At t = 0: U(0) = 4500.

Answer: The users grow 18% per month, starting from 4500 users.

Common mistakes

✗ Mistake8% growth per year: y = 300(0.08)t.
✓ Insteady = 300(1.08)t.

Each year you keep 100% of the amount and add 8%, so you multiply by 1.08. Multiplying by 0.08 would leave only 8% of the amount.

✗ MistakeA 10% raise each year for 3 years is a 30% raise.
✓ Instead1.13 = 1.331, a 33.1% raise.

Each 10% is taken of the new, larger amount, so the percents compound instead of simply adding.

✗ MistakeDoubling every 4 hours for 12 hours: a · 212.
✓ Insteada · 2124 = a · 23.

The exponent counts doublings, not hours. In 12 hours there are only 12 ÷ 4 = 3 doubling periods.

Not to be confused with

Exponential Growthvs.Linear growth

Linear growth adds the same amount each period (plus 50 a year); exponential growth multiplies by the same factor (times 1.05 a year). On a graph, linear is a straight line and exponential curves upward.

Exponential Growthvs.Exponential decay

Growth has a factor greater than 1, such as 1.2. Decay has a factor between 0 and 1, such as 0.8. A 20% increase and a 20% decrease are not opposites: 1.2 × 0.8 = 0.96.

Quick check: 3 questions

Question 1 of 3

Which model shows a quantity growing 12% per year from 600?

Show answer and explanation

Answer: B. The growth factor is 1 + 0.12 = 1.12. 0.12 forgets to keep the original 100%, 600 + 12t adds a fixed 12, and 12 as a factor means multiplying by twelve each year.

Question 2 of 3

A colony of 50 ants triples every week. How many ants are there after 4 weeks?

Show answer and explanation

Answer: C. 50 · 34 = 50 · 81 = 4050. 600 multiplies by 3 × 4, 200 adds 50 per week, and 1350 is only 3 weeks.

Question 3 of 3

Which table shows exponential growth?

Show answer and explanation

Answer: C. 3, 6, 12, 24 multiplies by 2 each step, a constant ratio. 2, 5, 8, 11 and 10, 20, 30, 40 add a constant (linear), and 1, 4, 9, 16 are squares (quadratic).

Exponential Growth: frequently asked questions

What is the formula for exponential growth?

The usual formula is y = a(1 + r)t: a is the starting amount, r is the growth rate per period as a decimal and t is the number of periods. When the doubling time d is given, use y = a · 2td. For continuous growth, as in some science problems, use y = aekt with k > 0.

What is the difference between linear and exponential growth?

Linear growth adds the same amount every period, so its graph is a straight line. Exponential growth multiplies by the same factor every period, so the amount added keeps getting bigger and the graph curves upward. Starting from 100, plus 20 a year gives 200 after 5 years; times 1.2 a year gives about 249.

What are real examples of exponential growth?

Money earning compound interest, a population with a steady birth rate, bacteria dividing in a lab dish and a rumor or video spreading through shares all grow by a percent of what is already there. Real growth cannot go on forever, because food, space or people run out, so models are used over limited time spans.

Practice and tools

Sources

  1. Common Core State Standards, High School Functions, Linear, Quadratic and Exponential Models (HSF-LE)
  2. Common Core State Standards, High School Functions, Interpreting Functions (HSF-IF.C.7.e, C.8.b)
  3. OpenStax, College Algebra 2e, 6.1 Exponential Functions
  4. OpenStax, College Algebra 2e, 6.7 Exponential and Logarithmic Models

Updated November 2026·Reviewed by the Effortless Math team·Standards: CCSS HSF-LE.A.1.c, CCSS HSF-IF.C.8.b

Cite this entry

Effortless Math Team. “Exponential Growth.” Effortless Math Dictionary. Updated November 2026. https://www.effortlessmath.com/math-dictionary/exponential-growth/

Flashcard

TermExponential Growthsame percent every period
DefinitionAn amount multiplied by the same factor above 1 each period: y = a(1 + r)t. Example: 100 growing 50% per step gives 100, 150, 225.
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