Rule of 72

Have you ever thought about how long it will take for you to double your money? Who hasn’t, right!  Here is a simple formula called the “Rule of 72.”  This formula will help you determine how long it will take you to double your money.

Divide 72 by the interest rate (rate of return) you are receiving.

Example:  Your interest rate is 4%
72 ÷ 4  = 18 years to double your money

In that example, the estimated number of years it will take to double your money is 18. Of course, the higher your interest rate, the quicker your money will double!