Rule Of 72


DEFINITION of 'Rule Of 72'

A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.


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For example, if you want to know how long it will take to double your money at 12% interest, divide 12 into 72 and you get six years.

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