Most of you are probably aware of the rule of 72 – it’s an easy way to calculate the approximate number of years it will take for your money to double based on a fixed interest rate. Simply divide 72 by the interest rate percentage you expect to receive and the answer will be approximately the number of years it will take for your initial amount of money to double in value.
For example, if you had $1000 that is earning 5% interest, you would divide 72 by 5. The result is that it will take about 14.4 years for you to double your money to $2000.
Nate put together a Double Your Money Calculator (Rule of 72 Calculator) to make the process even easier. Simply input the interest rate and it will calculate the number of years for your investment to double.
If you are bored or want to do some estimates, it’s a quick and easy way to do so. Of course, you’ll also want to use the Millionaire Calculator to know how long it will be before you reach that magic number