Investing – Money Management - 72 Rule
The 72 Rule is a simple tool to determine how many years it takes to double one's capital at a positive rate of return.
72-Rule
The 72 Rule is a simple tool to determine how many years it takes to double one's capital at a positive rate of return.
To do this, divide 72 by the average positive performance and get the number of years until the investment doubles.
72-Rule Samples
The following table shows the relationship between the number of years and the average return.
Average Annual Return
Number Of Years To Double The Investment
3.0 %
24
4.0 %
18
5.0 %
14.4
6.0 %
12
7.0 %
10.3
8.0 %
9
10.0 %
7.2
12.0 %
6
18.0 %
4
