The Rule of 72

Here’s a helpful way to estimate the amount of time or the interest rate you would need to double your money on savings or an investment. It’s called the Rule of 72.

72 / interest rate = Years to double your money

Let’s say you have an investment that’s earning 8% per year. Start with the number 72 and divide it by the interest rate, eight. 72 divided by 8 equals 9. This means it would take about nine years for your original investment to double. Try another example for yourself.

The Rule of 72 may help you determine the appropriate level of funding for your savings and investments.

Click the Next button to continue.