A rate-adaptive pacemaker is disclosed in which a sensor-indicated rate is calculated by adding a function of the measured exertion level to a programmed lower rate limit. In the case where the function of the measured exertion level is the difference between a short-term average and a long-term average of the measured exertion level, the lower rate limit is modulated as a function of the long-term average of the measured exertion level and maximum and minimum values of the long-term average of the measured exertion level during a defined extended time period.