Personal Finance
Beginner
Rule of 72
💡 In plain English: Divide 72 by your annual return to find how many years it takes your money to double.
Definition
A quick mental math rule to estimate the number of years required to double an investment at a given annual rate of return.
📌 Real-World Example
At 12% return: 72/12 = 6 years to double. At 6%: 72/6 = 12 years. At 18%: 72/18 = 4 years. Quick and surprisingly accurate.
🔢 Formula
Doubling Time ≈ 72 / Annual Return %
Try it yourself
Use the SIP Calculator to see this concept with your own numbers.
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