What Is Rule of 72?
From the SB Advisors Academy money glossary · Free, no signup
A quick mental math shortcut to estimate how many years it takes for an investment to double, found by dividing 72 by the annual interest rate.
A worked example
At an 8% annual return, your money doubles in roughly 9 years because 72 divided by 8 equals 9. At 6% it takes about 12 years.
Category
Part of the "Investing Basics" group in the money glossary.