CAGR Compound interest simplified >> Rule of 72
Rishi Kashyap
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Rule of 72


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Rule of 72 is a method or formula by which you can calculate either

  1. Approximate rate of return you expect to double your money in X years OR
  2. Approximate Years it will take to double your money at X % rate of return.
For example if you are expecting around 10 years to double your money then 72 / 10 is nearly 7.2 % return you expect.
The other way to say is if you expect 7.2% returns then amount of year it will take to double your money is approximately 10 years. Rule of 72
Rule of 72 applied for different rates expected to double your investment
Rate expectedYears to double
3 %24.0 years
4 %18.0 years
5 %14.4 years
6 %12.0 years
7 %10.3 years
8 %9.0 years
9 %8.0 years
10 %7.2 years
11 %6.5 years
12 %6.0 years
13 %5.5 years
14 %5.1 years
15 %4.8 years
16 %4.5 years
17 %4.2 years
18 %4.0 years
19 %3.8 years
20 %3.6 years
Rule of 72 applied for different years expected to double your investment
Years to doubleRate expected
3 years24 %
4 years18 %
5 years14.4 %
6 years12 %
7 years10.3 %
8 years9 %
9 years8 %
10 years7.2 %
11 years6.5 %
12 years6 %
13 years5.5 %
14 years5.1 %
15 years4.8 %
16 years4.5 %
17 years4.2 %
18 years4 %
19 years3.8 %
20 years3.6 %
Rule of 72 became famous because it helps us to calculate easily the approximate CAGR for double returns.
For other multiple returns or more accurate results it is better to use a calculator like our CAGR Calculator.

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Rishi Kashyap | EDITED | EDIT