The "Rule of 72" provides a quick and simple method to get a rough estimation of doubling time. Just divide 72 by your annual rate of interest or earnings. The result will tell you how many years it will take for your money double (this does not take into consideration the effect of taxes).

For example, if you earn a steady 6% per year, your initial investment would double in about 12 years (72 ¸ 6 = 12). However, if you are lucky enough to earn 14.5% per year, you would double your investment in about 5 years. The chart shows that even small increases in return rate can make a big difference in how fast you may be able to achieve your financial goals.

It's easy to calculate how long it will take to double your money using the "Rule of 72" - for example, turning \$10,000 into \$20,000 or \$100,000 into \$200,000.*

*The chart shows approximately how does it takes to double money (this does not take into consideration the effect of taxes).

 Approximate Doubling Time 15.0% 4.8 years 14.5% 5 years 13.5% 5.3 years 9% 8 years 8% 9 years 6% 1 2 years 4% 1 8 years