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What is the Rule of 72 in investing?
short by Anmol Sharma / on Sunday, 6 October, 2024
Rule of 72 is a formula used to estimate the time it takes for an investment to double. To calculate approximate doubling time, divide 72 by the expected rate of return. If one wants to determine the interest rate needed for investment to double within a specific timeframe, the following formula can be used: Rate of Return = 72/Doubling Time.