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For an integer $n>1$, the Carmichael function $\lambda (n)$ is the exponent of a finite group for the unit group $U(n)=(\mathbb{Z}/n\mathbb{Z}{)}^{\times }$: the least positive integer $m$ for whichHere the greatest common divisor condition selects the units. Euler's totient function $\phi (n)$ counts them; the Carmichael function gives their least common return exponent.^[ref]

Modulo eight, the units are $1,3,5,7$, and their squares are all congruent to one. Their multiplicative orders are $1,2,2,2$, so $\lambda (8)=2$ although $\phi (8)=4$. Modulo fifteen, the units $1,2,4,7,8,11,13,14$ have multiplicative orders $1,4,2,4,4,2,4,2$. For example, the powers of two return through $1,2,4,8,1$. Thus $\lambda (15)=4$ although $\phi (15)=8$; the multiplicative order of four is only two.

The three quantities are related byA common return exponent must be a multiple of every multiplicative order, hence of their least common multiple. Conversely, that least common multiple makes every unit return to one. Lagrange's theorem makes each multiplicative order divide the group order $\phi (n)$, proving the final divisibility. The Carmichael function applies to all units at once, while the multiplicative order concerns a chosen unit.

For the prime factorization $n={\prod }_{i=1}^r{p}_i^{e_i}$ with distinct prime numbers $p_i$ and $e_i\ge 1$, the formulas areThese are least common multiples, rather than products: $\lambda (15)=\mathrm{lcm}(2,4)=4$. The convention $\lambda (1)=1$ handles the trivial case separately.^[ref]

The Chinese remainder theorem for unit groups explains the least common multiple: a power returns to one in every prime power component exactly when it is a multiple of each component's exponent of a finite group. For an odd prime power, the unit group is a cyclic group of group order $p^{e-1}(p-1)$. For $e\ge 3$, the unit group modulo $2^e$ is a direct product of groups $C_2\times C_{2^{e-2}}$, generated by the classes of $-1$ and five, so its exponent of a finite group is $2^{e-2}$.^[ref]

This gives a uniform reduction for modular exponentiation: for a unit $a$ and a nonnegative integer $k$, reduce $k$ modulo $\lambda (n)$. For example, $2^{1001}\equiv 2(\mathrm{mod}15)$ because $1001\equiv 1(\mathrm{mod}4)$. The unit hypothesis matters: $3^2\equiv 1(\mathrm{mod}8)$, but $2^2\not\equiv 1(\mathrm{mod}8)$. Computing the formula assumes the prime factorization is available. The same common-exponent viewpoint explains Carmichael numbers: a composite number $n$ passes the Fermat primality test for every unit base exactly when $\lambda (n)\mid n-1$. For example, $\lambda (561)=\mathrm{lcm}(2,10,16)=80\mid 560$.