Finance

Rule of 72 Calculator

A quick mental-math shortcut for compound growth. Enter a rate to see how long money takes to double (and triple), or a number of years to find the return you need, compared with the exact figure.

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Rule of 72 estimate

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Exact answer (annual compounding)-
Rule of 69.3 (continuous compounding)-
Time to triple (rule of 114)-
Time to quadruple (rule of 144)-
RateRule of 72Exact years to double

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How to use the Rule of 72

  1. Choose whether you know the rate or the number of years.
  2. Enter it, and the calculator divides 72 by it.
  3. Compare the shortcut with the exact answer in the results and the table.

Why the Rule of 72 works

Money growing at r% a year doubles in ln(2) ÷ ln(1 + r) years. For typical rates that is very close to 72 ÷ r, and 72 is easy to divide by 2, 3, 4, 6, 8, 9 and 12, so it became the standard shortcut. At 8% money doubles in about 9 years; at 6%, about 12.

The rule is most accurate between about 6% and 10%. For continuous compounding, 69.3 is exact; for very high rates, 72 understates the time. Similar rules estimate tripling (114) and quadrupling (144).

It works for anything that compounds: investment returns, debt growing at a credit card rate, or inflation eroding purchasing power. At 3% inflation, prices double in about 24 years.

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Frequently asked questions

What is the Rule of 72?

A shortcut: divide 72 by the annual percentage rate to estimate how many years an amount takes to double.

How accurate is it?

Within a few percent for rates between about 4% and 12% with annual compounding.

What is the Rule of 69?

The exact version for continuous compounding, since ln(2) ≈ 0.693.

Can I use it for debt?

Yes. A credit card balance at 24% doubles in about 3 years if unpaid.

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