Rule of 72
Estimate how many years it takes to double an investment.
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The Rule of 72 is a simple mental math shortcut to estimate how long it takes an investment to double, or what growth rate is needed to double in a given time. Divide 72 by the annual return rate to get years to double.
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Pro Tip
Use Rule of 115 to estimate tripling time: 115 / rate. Use Rule of 144 for quadrupling: 144 / rate.
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Did You Know?
The Rule of 72 also works in reverse for debt. At 18% credit card interest, your debt doubles in just 4 years if you make no payments. At 24% payday loan rates, it doubles in 3 years.
References
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