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The rule of 72

A mental shortcut: when will your money double?

The formulaYears to double ≈ 72 ÷ yearly return %

Examples

At 6%72 ÷ 6 = 12 years
At 9%72 ÷ 9 = 8 years
At 3%72 ÷ 3 = 24 years

The exact answer at 6% is 11.9 years — very close.

It works in reverse with inflation too: 3% inflation halves your money's buying power in about 24 years.

It's an approximation, most accurate between 4% and 12%.

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