diff --git a/cmd/restic/cmd_backup.go b/cmd/restic/cmd_backup.go
index dc84ed280..1e0c3c46b 100644
--- a/cmd/restic/cmd_backup.go
+++ b/cmd/restic/cmd_backup.go
@@ -234,8 +234,18 @@ func collectRejectFuncs(opts BackupOptions, repo *repository.Repository, targets
 }
 
 // readExcludePatternsFromFiles reads all exclude files and returns the list of
-// exclude patterns.
+// exclude patterns. For each line, leading and trailing white space is removed
+// and comment lines are ignored. For each remaining pattern, environment
+// variables are resolved. For adding a literal dollar sign ($), write $$ to
+// the file.
 func readExcludePatternsFromFiles(excludeFiles []string) []string {
+	getenvOrDollar := func(s string) string {
+		if s == "$" {
+			return "$"
+		}
+		return os.Getenv(s)
+	}
+
 	var excludes []string
 	for _, filename := range excludeFiles {
 		err := func() (err error) {
@@ -258,7 +268,7 @@ func readExcludePatternsFromFiles(excludeFiles []string) []string {
 					continue
 				}
 
-				line = os.ExpandEnv(line)
+				line = os.Expand(line, getenvOrDollar)
 				excludes = append(excludes, line)
 			}
 			return scanner.Err()
diff --git a/doc/040_backup.rst b/doc/040_backup.rst
index ec3e957b7..b1e92369b 100644
--- a/doc/040_backup.rst
+++ b/doc/040_backup.rst
@@ -158,7 +158,9 @@ Patterns use `filepath.Glob <https://golang.org/pkg/path/filepath/#Glob>`__ inte
 see `filepath.Match <https://golang.org/pkg/path/filepath/#Match>`__ for
 syntax. Patterns are tested against the full path of a file/dir to be saved,
 even if restic is passed a relative path to save. Environment-variables in
-exclude-files are expanded with `os.ExpandEnv <https://golang.org/pkg/os/#ExpandEnv>`__.
+exclude-files are expanded with `os.ExpandEnv <https://golang.org/pkg/os/#ExpandEnv>`__,
+so `/home/$USER/foo` will be expanded to `/home/bob/foo` for the user `bob`. To
+get a literal dollar sign, write `$$` to the file.
 
 Patterns need to match on complete path components. For example, the pattern ``foo``: