An efficient model for erbium‐doped optical amplifiers is presented in this paper. This model, based on an iterative finite‐element stationary (modal analysis) scheme in conjunction with a suitable multilevel rate equations system, permits a direct computation of the complex propagation constant β. In addition, the use of absorption/emission cross‐section parameters permits the computation of the gain, related to Im{β}, and induced nonlinearities, related to Re{β}, over a wideband spectrum (1.40–1.65 μm). Since up‐conversion and cross‐relaxation effects are taken into account, the model is also able to analyze highly doped waveguides. Comparisons with other approach and experimental data validate this model. ©1999 John Wiley & Sons, Inc. Microwave Opt Technol Lett 23: 261–263, 1999.