What is the Rule of 72

Share this post!

Vote this!

Rule of 72, which is a very easy way to calculate in your head how long it will take to double your money or debt based on a given fixed interest rate, assuming the interest is annually compounded. Use of the Rule of 72 is very simple.  All you have to do is divide 72 by the interest rate.  The resulting number is the number of years it will take for the amount to double, given that fixed interest rate.  more...