Use the Rule of 72 to estimate how long it takes to double your investment. Free Rule of 72 calculator for any rate of return.
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The Rule of 72 is a simple mental math formula that estimates how long it takes to double your investment: divide 72 by your annual rate of return. At 8% annual returns, your money doubles in about 9 years (72 ÷ 8 = 9). It's a powerful tool for quickly evaluating investment potential.
The Rule works best for annual returns between 6% and 10%. For higher returns, the estimate becomes less accurate but still useful as a quick reference. You can also calculate required rate: need to double your money in 5 years? You need a 14.4% return (72 ÷ 5 = 14.4).
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Misestimating variables like interest rates or ignoring fees/commissions.