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The Rule of 72 — Estimate Doubling Time

Calculating how long it takes for an investment to double at a given interest rate requires compound interest formulas. Divide 72 by the annual interest rate to...

Problem

Calculating how long it takes for an investment to double at a given interest rate requires compound interest formulas.

Solution

Divide 72 by the annual interest rate to get the approximate number of years to double your money.

Benefit

Instant mental calculation for financial planning — no calculator or compound interest formula needed.

Example

Years to double = 72 ÷ Interest Rate

At 6% interest:
72 ÷ 6 = 12 years to double

At 9% interest:
72 ÷ 9 = 8 years to double

At 3% interest:
72 ÷ 3 = 24 years to double

Works in reverse too:
To double in 6 years, you need 72 ÷ 6 = 12% return

ES
Edrees Salih
7 hours ago

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