Rule 005 · Investing · 0:44 · Oct 23, 2026
The rule of 72
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Transcript
The rule of seventy two is a shortcut. Divide seventy two by an annual growth rate, and you get the approximate years for money to double. At six percent, twelve years. At nine percent, eight years. At twelve, six. It also works in reverse. At three percent inflation, prices double in about twenty four years. It is not exact, but it is close enough to think with.
The takeaway
Seventy two divided by the rate is the years to double.
Education, not financial advice. Figures may be simplified for illustration.