Estimate how long it takes to double your money using the Rule of 72, or find the rate needed to double in a given time.
| Rate | Years to Double |
|---|---|
| 1% | 72.0 years |
| 3% | 24.0 years |
| 5% | 14.4 years |
| 7% | 10.3 years |
| 10% | 7.2 years |
| 15% | 4.8 years |
| 20% | 3.6 years |
The Rule of 72 is a simplified formula that estimates the time required to double an investment at a fixed annual rate of return. Divide 72 by the annual interest rate to get the approximate number of years. Conversely, divide 72 by the number of years to find the required rate.
The formula is most accurate for interest rates between 5% and 10%. Outside this range, the rule becomes less precise, though it remains a useful mental shortcut.
This is for informational and educational purposes only.