Rule of 72 Calculator — How Fast Does Your Money Double?
Divide 72 by your interest rate to estimate doubling time
How much is Rule of 72 Calculator — How Fast Does Your Money Double??
The Rule of 72 is a quick formula to estimate how long an investment takes to double. Divide 72 by the annual interest rate to get the approximate number of years. For example, at 8% interest, your money doubles in about 9 years. This shortcut works best for rates between 2% and 15%.
Rule of 72 — Doubling Time at Various Rates
The Rule of 72 is a simple mental math shortcut: divide 72 by the annual interest rate to estimate how many years it takes for your investment to double.
| Interest Rate | Rule of 72 Estimate | Actual Years (Monthly Compounding) |
|---|---|---|
| 2% | 36.0 years | ~35 years |
| 3% | 24.0 years | ~24 years |
| 4% | 18.0 years | ~18 years |
| 5% | 14.4 years | ~14 years |
| 6% | 12.0 years | ~12 years |
| 7% | 10.3 years | ~10 years |
| 8% | 9.0 years | ~9 years |
| 9% | 8.0 years | ~8 years |
| 10% | 7.2 years | ~7 years |
| 12% | 6.0 years | ~6 years |
| 15% | 4.8 years | ~5 years |
How to use it: Want to know how long until your money doubles at 8%? Just calculate 72 / 8 = 9 years. At 6%? That's 72 / 6 = 12 years. The formula works for any interest rate between 2-15%.
The Math Behind the Rule of 72
The Rule of 72 comes from the natural logarithm of 2 (ln(2) = 0.693). The exact doubling time is:
The number 72 is used instead of 69.3 because it has more whole-number divisors (1, 2, 3, 4, 6, 8, 9, 12), making mental math easier. The approximation is most accurate for rates between 6-10%.
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