The Rule of 72

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The Rule of 72 helps us to realize when we can double our investment

The Rule of 72

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DEFINITION OF ‘RULE OF 72’

A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.


INVESTOPEDIA EXPLAINS ‘RULE OF 72’

For example, if you want to know how long it will take to double your money at 12% interest, divide 12 into 72 and you get six years.

SOURCE: Read more: Investopedia
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Watch this video on the Rule of 72


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DISCLAIMER: We do not own the rights to this video. It is for educational purposes only. Always seek competent and licensed legal and/or financial advice when seeking to invest your capital or resources.



The Rule of 72 helps us to realize when we can double our investment

This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or greater on a consistent basis, given current market conditions.


DISCLAIMER: Don Johnson is a Licensed Real Estate Broker acting in the capacity as an investor/principle in Time Value Assets LLC and/or Time Value Investments LLC. You are not being represented in any manner whatsoever by Don Johnson as a real estate licensee. You are always advised to act in your own best interest and to consult with legal, and/or accounting professionals as you deem necessary to conduct business with or through Time Value Assets LLC and/or Time Value Investments LLC.

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