Ever wondered how long it takes for your money to double? Instead of pulling out a calculator, there’s a simple trick—The Rule of 72.

What Is the Rule of 72?

The Rule of 72 is a quick way to estimate how many years it will take for your investment to double, based on the annual return rate.

How It Works:

Just divide 72 by your interest rate (as a percentage), and that’s how long it will take for your money to grow 2x.

🔹 Example 1: If your savings account earns 6% per year, the math is:
→ 72 ÷ 6 = 12 years (Your money doubles in 12 years.)

🔹 Example 2: If you invest in stocks with a 10% return, then:
→ 72 ÷ 10 = 7.2 years (Your money doubles in just over 7 years!)

Why It’s Useful:

This rule helps you quickly compare investments and see how time and interest rates affect your wealth. It’s a favorite trick of investors because it works well for compound growth, not just simple interest.

Why Higher Returns Matter:

The higher the return, the faster your money grows. Check out the difference:

• 2% return → 36 years to double
• 6% return → 12 years to double
• 12% return → 6 years to double

This shows why low-interest savings accounts aren’t great for long-term growth, while investing in stocks, real estate, or other high-return assets can help you grow wealth faster.

Final Thoughts:

The Rule of 72 is an easy and powerful tool to understand how money grows. The sooner you start investing, the faster you can double your money.

So… if you had $1,000 today, how long would it take to become $2,000?