Financial Terms / Q - R / Rule of 72

Rule of 72

The rule of 72 is a quick, back-of-the-napkin math method to determine how many years it takes to double your money for a given yearly interest rate. It is calculated by dividing the number 72 by the rate of interest.

For example, if the interest rate is 12%, then according to the rule of 72, your money will double in 6 years.