Quickly Estimate Your Investment Growth
In finance, the Rule of 72 is a simple and widely used formula to estimate the number of years required to double the invested money at a given annual rate of return.
Our Rule of 72 Calculator applies this formula instantly. If you expect a 6% return from the stock market, just type in 6, and the calculator divides 72 by 6 to tell you that your money will take about 12 years to double. It's an essential mental math trick for any investor.
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The Rule of 72 is an approximation. It is very accurate for interest rates between 6% and 10%. Outside of this range, it becomes slightly less precise, but remains a very useful rule of thumb.
Yes! You can use the Rule of 72 in reverse. If inflation is 3%, 72 divided by 3 equals 24. This means your money will lose half its purchasing power in about 24 years.
The number 72 is chosen because it is easily divisible by many common interest rates (1, 2, 3, 4, 6, 8, 9, 12). While 69.3 is technically more accurate mathematically for continuous compounding, 72 is standard for easy mental math.