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Rule of 72

Definition

A quick estimate of how long it takes money to double at a fixed annual rate of return: divide 72 by the rate.

Formula

Years to double ≈ 72 ÷ Annual return (%)

Example

At 6% a year, money roughly doubles in 72 ÷ 6 = 12 years.

Try the numbers

General educational information, not personal financial advice. See our disclaimer.

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