Basics

Rule of 72

The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by your annual return rate. At 8% return, money doubles in about 9 years. The formula: 72 ÷ rate ≈ years to double.

Example

At 6% return: 72 ÷ 6 = 12 years to double your investment.

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Rule of 72 — Definition & Example | Investors Lab | Investors Lab