Do you know how to calculate in you head, how fast your money Doubles?
It's called the Rule of 72
Simply divide the interest rate into the number 72! As your result, you will have an approximate number of years it will take for your money to Double.
Example, if you were receiving a 12% annualized return
on your investment,
72 divided by 12 = 6, it would take 6 years for your money to double.
| Time Period | 3% APR | 6% APR | 12% APR |
| Initial | $25,000.00 | $25,000.00 | $25,000.00 |
| 6 Years | $50,000.00 | ||
| 12 Years | $50,000.00 | $100,000.00 | |
| 18 Years | $200,000.00 | ||
| 24 Years | $50,000.00 | $100,000.00 | $400,000.00 |
| 30 Years | $800,000.00 | ||
| 36 Years | $200,000.00 | $1,600.000.00 | |
| 42 Years | $3,200,000.00 | ||
| 48 Years | $100,000.00 | $400,000.00 | $6,400,000.00 |
The above chart is an approximation based on hypothetical returns, and does not take taxes into account.