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Before making a major financial decision you
should consult a qualified professional.
Click the above link to open the calculator in a new window.
Note: best viewed in Chrome or
Firefox. If using IE, you may need to use compatibility
view for the calculators to work properly.
The Rule of 72 provides a very simple way to estimate how
long it will take your investment to double.
Simply divide 72 by the compound annual rate of return on
the investment. The result is the number of years it will take to
double your investment.
For example, if the rate is 12%, divide 72 by 12.
The investment will double in approximately 6 years. At a 9% rate of
return, it would take 8 years. At 0.1%, the approximate rate paid by
most high-interest savings accounts in 2021, it would take 720 years!
However, inflation is much higher than that, so you'd actually be losing
money, because double the money would buy about 1/4 to 1/2 of the goods!
Our Rule
of 72 Calculator lets you input a rate to determine the
number of years, or you can input the number of years to determine the
approximate rate required to double your investment.
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