Rule Of 72

The Rule Of 72 is eye-popping simple to learn and understand, and life-changing powerful when applied.

With The Rule of 72 you can estimate the time it will take for compound interest to double your investment or debt. It is so simple that you can do it in your head without a calculator.

72 divided by the compound interest rate equals the approximate number of years to double the value. That's it.

As an example, 72 divided by 6 (representing 6%) equals about 12 years to double. Or 72 divided by 9 (representing 9%) equals about 8 years to double.

Frequent doubling over time creates exponential growth. Obviously, something that doubles once becomes worth twice as much. Doubling again makes it worth four times its original value. Doubling a third time makes it worth eight times its original value, and a fourth doubling makes it worth sixteen times its original value. You can see the massive difference between the value of something that doubles three times and something that doubles four times. Imagine doubling it five or six times.

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The Rule of 72 is applicable to saving, investing, lending, nutrition, debt, real estate, networking, blockchains, viral communication, learning, time, and many other activities and subjects.