# How do you do the Rule of 72 backwards?

## How do you do the Rule of 72 backwards?

You can also use the rule of 72 backwards: To estimate how long it will take for your money to double, simply divide 72 by the interest rate. For example, let’s say you’re having a super successful investing run and earning 20% annually. How long would your run need to last for your money to double?

### How do you calculate Rule of 72?

The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.

#### How long would it take to double your money in an account that paid 6% per year?

12 years
To use the Rule of 72 in order to determine the approximate length of time it will take for your money to double, simply divide 72 by the annual interest rate. For example, if the interest rate earned is 6%, it will take 12 years (72 divided by 6) for your money to double.

How can I double my money in 1 year?

Here are some options to double your money:

1. Tax-free Bonds. Initially tax- free bonds were issued only in specific periods.
2. Kisan Vikas Patra (KVP)
3. Corporate Deposits/Non-Convertible Debentures (NCD)
4. National Savings Certificates.
5. Bank Fixed Deposits.
6. Public Provident Fund (PPF)
7. Mutual Funds (MFs)
8. Gold ETFs.

How does the rule of 72 calculator work?

This rule of 72 calculator does the calculations for you and will calculate two things: Given a certain interest rate, the number of years required to double an investment. Given a certain number of years, the interest rate required to double an investment during that time frame. You are reading a preview.

## What is the rule of 72 for compound interest?

Rule of 72 Formula. The Rule of 72 is a simple way to estimate a compound interest calculation for doubling an investment. The formula is interest rate multiplied by the number of time periods = 72: Commonly, periods are years so R is the interest rate per year and t is the number of years.

### How long does it take for money to double by 72?

Simply enter a given rate of return and this calculator will tell you how long it will take for the money to double by using the rule of 72. That rule states you can divide 72 by the rate of return to estimate the doubling frequency. Rule of 72 Formula: Years = 72 / rate OR rate = 72 / years.

#### How do you calculate the rate required to double the money?

That rule states you can divide 72 by the length of time to estimate the rate required to double the money. Rule of 72 Formula: Years = 72 / rate OR rate = 72 / years.