Do you know the Rule of 72? It's an easy way to calculate just how long it's going to take for your money to double.

Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double.

As you can see, a one-time contribution of $10,000 doubles six more times at 12 percent than at 3 percent.

Years | 3% | 6% | 12% |

0 | $10,000 | $10,000 | $10,000 |

6 | | | $20,000 |

12 | | $20,000 | $40,000 |

18 | | | $80,000 |

24 | $20,000 | $40,000 | $160,000 |

30 | | | $320,000 |

36 | | $80,000 | $640,000 |

42 | | | $1,280,000 |

48 | $40,000 | $160,000 | $2,560,000 |

## How many doubling periods do you have in your life?

This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or greater on a consistent basis.

## FAQs

Do you know the Rule of 72? It's an easy way to calculate just how long it's going to take for your money to double. Just **take the number 72 and divide it by the interest rate you hope to earn**. That number gives you the approximate number of years it will take for your investment to double.

**
What is the Rule of 72 in simple terms? ›
**
What Is the Rule of 72? The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. Dividing 72 by the annual rate of return gives investors a rough estimate of how many years it will take for the initial investment to duplicate itself.

**
Is the Rule of 72 still accurate? ›
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The Rule of 72 works best in the range of 5 to 12 percent, but **it's still an approximation**. To calculate based on a lower interest rate, like 2 percent, drop the 72 to 71; to calculate based on a higher interest rate, add one to 72 for every three percentage point increase.

**
What is the Rule of 72 69? ›
**
Rules of 72, 69.3, and 69

The Rule of 72 states that **by dividing 72 by the annual interest rate, you can estimate the number of years required for an investment to double**. The Rule of 69.3 is a more accurate formula for higher interest rates and is calculated by dividing 69.3 by the interest rate.

**
What is the Rule of 72 100000? ›
**
By using the Rule of 72 formula, your calculation will look like this: **72/6 = 12**. This tells you that, at a 6% annual rate of return, you can expect your investment to double in value — to be worth $100,000 — in roughly 12 years.

**
How to double $2000 dollars in 24 hours? ›
**
Try Flipping Things

Another way to double your $2,000 in 24 hours is by **flipping items**. This method involves buying items at a lower price and selling them for a profit. You can start by looking for items that are in high demand or have a high resale value. One popular option is to start a retail arbitrage business.

**
What does the Rule of 72 allow you to do? ›
**
The rule of 72 can help you forecast how long it will take for your investments to double. Divide 72 by the annual fixed interest rate to determine the rate at which the money would double. Historical returns on your investment type can help choose a realistic expected return rate, in some cases.

**
What is the golden Rule of 72? ›
**
1) Rule of 72

The 'Rule of 72' gives you an estimate of the number of years it will take to double your money in a particular investment tool. You need to divide the rate of returns by 72 to know the time it would take you to double your investments.

**
Do 90% of millionaires make over $100,000 a year? ›
**
Dave Ramsey recently conducted a study of over 10,000 millionaires. Although some millionaires have high-paying jobs, only **31% average $100,000 per year during their careers**. The keys to becoming a millionaire are spending wisely and investing consistently.

**
What are the flaws of Rule of 72? ›
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Errors and Adjustments

The rule of 72 is only an approximation that is accurate for a range of interest rate (from 6% to 10%). Outside that range the error will vary from 2.4% to 14.0%. It turns out that **for every three percentage points away from 8% the value 72 could be adjusted by 1**.

The formula for the Rule of 144 is, **144 divided by the interest rate equal to the number of years it will take to quadruple your money**. For instance: If you invest Rs 1,00,000 with a 12% annual expected return, then the time by which it will gain four times is 144/12 = 12 years.

**
What is the rule of 67 in finance? ›
**
**Money paid into court under this rule must be deposited and withdrawn in accordance with 28 U.S.C.** **§§2041 and 2042 and any like statute**. The money must be deposited in an interest-bearing account or invested in a court-approved, interest-bearing instrument.

**
How long does it take to double money at 8%? ›
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The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.

**
What is the rule of 74? ›
**
**For a 14% rate of return**, it would be the rule of 74 (adding 2 for 6 percentage points higher), and for a 5% rate of return, it will mean reducing 1 (for 3 percentage points lower) to lead to the rule of 71. For example, say you have a very attractive investment offering a 22% rate of return.

**
How can I double $5000 dollars? ›
**
To turn $5,000 into more money, **explore various investment avenues like the stock market, real estate or a high-yield savings account** for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.

**
What is the 8 4 3 rule of compounding? ›
**
The rule of 8-4-3 for mutual funds states that if you invest Rs 30,000 monthly into an SIP with a return of 12% per annum, then your portfolio will add Rs 50 lacs in the first 8 years, Rs 50 lacs in the next 4 years to become Rs 1 cr in total value and adds further Rs 50 lacs in the next 3 yrs to reach Rs 1.5 cr.

**
What are examples of the Rule of 72? ›
**
For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money. Note that a compound annual return of 8% is plugged into this equation as 8, and not 0.08, giving a result of nine years (and not 900).

**
What are three things the Rule of 72 can determine? ›
**
dividing 72 by the interest rate will show you how long it will take your money to double. How many years it takes an invesment to double, How many years it takes debt to double, The interest rate must earn to double in a time frame, How many times debt or money will double in a period of time.

**
How long will it take to increase a $2200 investment to $10,000 if the interest rate is 6.5 percent? ›
**
It will take approximately **15.27 years** to increase the $2,200 investment to $10,000 at an annual interest rate of 6.5%.