# Logarithm

*Math & Statistics — Finicade finance glossary*

The inverse of exponentiation — it answers 'what power turns this base into that number?'. In finance it tames compounding: log returns add up neatly across time where percentage returns don't.

**Also known as:** log, logs, logarithm as inverse, log rules, natural log, log returns

**Related terms:** [Exponential Growth](https://finicade.com/glossary/exponential-growth), [Compound Interest](https://finicade.com/glossary/compound-interest), [Continuous Compounding](https://finicade.com/glossary/continuous-compounding)

**Taught in:** Math Masters — Logarithms & Log Returns

Source: https://finicade.com/glossary/logarithm