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What is the Rule of 72?

What is the Rule of 72?

April 28, 2022

During a workshop I recently led, I suddenly realized that there were some investment concepts that people weren’t familiar with. So, here’s a quick explanation of the Rule of 72!

What Is the Rule of 72?

The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.   

For example, if you are earning 8% on your investment consistently, it will take 9 years to double your money.   8x9=72

If you are earning 6% will take you 12 years to double your money: 6x12 = 72


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