The Comprehensive Guide to the Rule of 72

3 minutes

What is the ‘Rule Of 72’


The rule of 72 is a shortcut to estimate the number of years required to double your money at a given annual rate of return. The rule states that you divide the rate, expressed as a percentage, into 72:

Years required to double investment = 72 ÷ compound annual interest rate

Note that a compound annual return of 8% is plugged into this equation as 8, not 0.08, giving a result of 9 years.

Based on our conversation earlier about compounding and how it is your friend. We are going to discuss how the rule of 72 can help you.


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