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The Rule of 72 is a quick way to estimate how long it takes for an investment to double at a given interest rate.
Simply divide 72 by the annual interest rate. At 6% interest, your money doubles in approximately 12 years (72 ÷ 6 = 12). At 8%, it doubles in about 9 years. At 12%, in just 6 years.
This rule illustrates why even small differences in returns matter enormously over time. It also shows why high-interest debt is so dangerous—credit card debt at 24% doubles what you owe in just 3 years.
Simply divide 72 by the annual interest rate. At 6% interest, your money doubles in approximately 12 years (72 ÷ 6 = 12). At 8%, it doubles in about 9 years. At 12%, in just 6 years.
This rule illustrates why even small differences in returns matter enormously over time. It also shows why high-interest debt is so dangerous—credit card debt at 24% doubles what you owe in just 3 years.