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Explained: Want to know how long your investment will take to double? Use Rule of 72

By Sohail Khan 3 October 2026, 9:53 am

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Business News›Mutual Funds›Analysis›Explained: Want to know how long your investment will take to double? Use Rule of 72

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Explained: Want to know how long your investment will take to double? Use Rule of 72
Synopsis

The Rule of 72 is a tool that assists investors in estimating investment growth duration. By dividing the rate of return into 72, one can predict how long doubling their investment will take. It is particularly beneficial for understanding compound interest and the impact of inflation. Additionally, the method can determine the required rate of return to double an investment in a specified timeframe.

Explained: Want to know how long your investment will take to double? Use Rule of 72<br>

The Rule of 72 is a simple method used to estimate how many years an investment will take to double in value at a given rate of return. It provides a quick way for investors to understand how long their money may take to grow to twice its original value.

This Rule of 72 provides a reasonably accurate estimate, particularly when used with lower rates of return. It is mainly useful for investments that earn compound interest, while it is less suitable for investments based on simple interest.

Rule 72 is considered as a good educational tool that helps investors to know about the impact of compounding on their wealth.

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Where r is rate of return

Therefore, Rule 72 = 72/9

= 8 years

This indicates that it will take 8 years to double the investment.

The below mentioned helps you in determining how many years will it take to double your investments with different rate of return

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The )

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