Rule of thumb · FinanceNº 35 / 96

The Rule of 72

Money doubles in about 72 ÷ (interest rate %) years.

Why it works

A first-order approximation of compound growth, accurate within ~2% for rates of 4–12%. At 8%, doubling takes ~9 years.

Do it exactly

Estimate with the rule, then check it against the calculator that models it properly.

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