How to Use the LN Function in Microsoft Excel
Part 1: Introduce
🌟 Definition
The LN function in Microsoft Excel returns the natural logarithm of a number. Natural logarithms are based on the constant e (approximately equal to 2.71828182845904).
🌟 Purpose
The Purpose of the LN function is to compute the natural logarithm of a given positive real number.
🌟 Syntax & Arguments
LN(number) - Number (Required): The positive actual number for which you want the natural logarithm.
🌟 Explain the Arguments in the function
- Number: This is the positive actual number whose natural logarithm you wish to determine.
🌟 Return value
The LN function returns the natural logarithm of the specified number.
🌟 Remarks
The LN function is the inverse of the EXP function in Excel.
Part 2: Examples
Example 1: Finding the Natural Logarithm of a Business Revenue
- Purpose of illustration: To determine the natural logarithm of a company’s monthly revenue.
- Data sheet and formulas:
| A | B | C | |
|---|---|---|---|
| 1 | Monthly Revenue ($) | Formula | Result |
| 2 | 50000 | =LN(A2) | 10.819778 |
- Explanation: The natural logarithm of the monthly revenue ($50,000) is approximately 10.82.
Example 2: Calculating the Natural Logarithm of Product Sales
- Purpose of illustration: To compute the natural logarithm of the number of products sold.
- Data sheet and formulas:
| A | B | C | |
|---|---|---|---|
| 1 | Products Sold | Formula | Result |
| 2 | 1500 | =LN(A2) | 7.313220 |
- Explanation: The natural logarithm of the number of products sold (1,500) is approximately 7.31.
Example 3: Natural Logarithm of Client Sign-ups
- Purpose of example: To determine the natural logarithm of client sign-ups in a month.
- Data sheet and formulas:
| A | B | C | |
|---|---|---|---|
| 1 | Client Sign-ups | Formula | Result |
| 2 | 300 | =LN(A2) | 5.703782 |
- Explanation: The natural logarithm of the number of client sign-ups (300) is approximately 5.70.
Example 4: Natural Logarithm of Website Visits
- Purpose of example: To compute the natural logarithm of the number of website visits.
- Data sheet and formulas:
| A | B | C | |
|---|---|---|---|
| 1 | Website Visits | Formula | Result |
| 2 | 10000 | =LN(A2) | 9.210340 |
- Explanation: The natural logarithm of the number of website visits (10,000) is approximately 9.21.
Example 5: Natural Logarithm of Social Media Followers
- Purpose of illustration: To determine the natural logarithm of the number of social media followers.
- Data sheet and formulas:
| A | B | C | |
|---|---|---|---|
| 1 | Followers | Formula | Result |
| 2 | 5000 | =LN(A2) | 8.517193 |
- Explanation: The natural logarithm of social media followers (5,000) is approximately 8.52.
Example 6: Using LN with IF for Website Visits
- Purpose of example: To compute the natural logarithm of website visits only if they exceed a certain threshold.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Threshold | Website Visits | Formula | Result |
| 2 | 5000 | 6000 | =IF(B2>A2, LN(B2), "Below Threshold") | 8.699514 |
- Explanation: The formula checks if the website visits (6,000) exceed the threshold (5,000). Since it does, it returns the natural logarithm of the holidays, approximately 8.70.
Example 7: Using LN with SUM for Monthly Sales
- Purpose of example: To compute the natural logarithm of the sum of monthly sales.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Jan Sales | Feb Sales | Formula | Result |
| 2 | 3000 | 4000 | =LN(SUM(A2:B2)) | 8.517193 |
- Explanation: The formula sums up the sales of January and February (total 7,000) and then computes its natural logarithm of approximately 8.52.
Example 8: Using LN with VLOOKUP for Product Prices
- Purpose of example: To find the natural logarithm of the price of a specific product using VLOOKUP.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Product | Price | Formula | Result |
| 2 | Apple | 1.2 | =LN(VLOOKUP("Apple", A2:B2, 2, FALSE)) | 0.182322 |
- Explanation: The formula looks up the price of “Apple” and then computes its natural logarithm, approximately 0.18.
Example 9: Using LN with AVERAGE for Weekly Hours Worked
- Purpose of illustration: To compute the natural logarithm of the average hours worked in a week.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Mon Hours | Tue Hours | Formula | Result |
| 2 | 8 | 9 | =LN(AVERAGE(A2:B2)) | 2.197225 |
- Explanation: The formula averages the hours worked on Monday and Tuesday (8.5 hours) and then computes its natural logarithm, approximately 2.20.
Example 10: Using LN with MAX for Monthly Temperatures
- Purpose of example: To compute the natural logarithm of the highest temperature in a month.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | 1st Week Temp | 2nd Week Temp | Formula | Result |
| 2 | 25 | 28 | =LN(MAX(A2:B2)) | 3.332205 |
- Explanation: The formula finds the maximum temperature between the two weeks (28°C) and computes its natural logarithm of approximately 3.33.
Example 11: Using LN with MIN for Monthly Discounts
- Purpose of example: To compute the natural logarithm of the minor monthly Discount offered.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | 1st Discount | 2nd Discount | Formula | Result |
| 2 | 15 | 10 | =LN(MIN(A2:B2)) | 2.302585 |
- Explanation: The formula finds the minimum Discount between the two offers (10%) and computes its natural logarithm of approximately 2.30.
Example 12: Using LN with COUNT for Number of Transactions
- Purpose of example: To compute the natural logarithm of the number of daily transactions.
- Data sheet and formulas:
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Transaction 1 | Transaction 2 | Formula | Result |
| 2 | 120 | 150 | =LN(COUNT(A2:B2)) | 0.693147 |
- Explanation: The formula counts the number of transactions (2) and computes its natural logarithm, approximately 0.69.
Part 3: Tips and tricks
- 📌 Remember that the LN function requires a positive actual number as its argument.
- 📌 The LN function can benefit financial and scientific calculations requiring natural logarithms.
- 📌 If you’re looking to compute the logarithm with a base other than ‘e’, consider using the LOG function in Excel.
- 📌 Always ensure that the number provided to the LN function is positive to avoid errors.