This calculator helps you estimate how long it will take for an investment to double in value based on a fixed annual rate of return. It's a quick way for investors, financial planners, and educators to understand the effects of compounded growth. Simply enter the expected annual interest rate, and the calculator will do the rest.
The Rule of 72 is a universally recognized formula used in finance to estimate the doubling time of an investment. Calculations are based strictly on this formula, ensuring accurate and reliable results.
Years to Double = 72 / Interest Rate
The Rule of 72 is a simple formula used to estimate the number of years required to double the invested money at an annual compounded interest rate.
It is a good approximation for interest rates between 6% and 10%. The accuracy decreases for rates outside this range.
While it provides a quick estimate, its accuracy decreases for very high or low rates. It's best used for rates between 6% and 10%.
It is most useful for investments with constant compounding rates. It may not be accurate for variable rate investments.
The number 72 is chosen because it has many divisors, making mental calculations easier with common interest rates.