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Rule of 72
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Rule of 72

The Rule of 72 is a quick way to determine how long it will take an investment to double.

Divide the rate into 72 and the answer is the number of years it will take for your money to double.

So, for example, at the rate of
12
% your
money
will double every
6
years!

A $10,000 investment would grow
exponentially
! What ending balance would you prefer to generate?

Rule of 72
1
Created with Highcharts 9.2.2$40,000.00$160,000.00$2,560,000.00

A $10,000 Investment
1
Rule of 72
3%
6%
12%
1
6
$20,000
2
12
$20,000
$40,000
3
18
$80,000
4
24
$20,000
$40,000
$160,000
5
30
$320,000
6
36
$80,000
$640,000
7
42
$1,280,000
8
48
$40,000
$160,000
$2,560,000
There are no rows in this table

When do we need to learn this concept?

Why don't they teach this in schools?


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