Rule of 72

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These numbers are a rough estimate. This is not financial advice.

What is the Rule of 72?

You can double your investments if you get a great rate of return thanks to the power of compound interest. But, how will you know what rate of return you need to double your initial investment in the next 3, 5, or 10 years? Easy! Use the Rule of 72.

The Rule of 72 is a time-tested formula used by both old and new investors every day to estimate the amount of time it will take to double their initial investment - whether it in a particular stock (ETF or REIT), a retirement account, or a savings account.

Why does this work?

This rule of thumb helps you calculate when your money (or any unit of number) will double at a given growth (annualized return) rate.