Rule of 72 & Doubling Time Calculator

Rule of 72 & Doubling Time Calculator

Instructions: Enter any 1 parameters and leave 1 parameter empty to calculate the missing value.

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Calculation Results

Doubling Time

How to Calculate Doubling Time?

Exact Formula: t = ln(2) / ln(1 + r)

Where:

  • t = doubling time (in periods)
  • r = interest rate per period (as decimal)
  • ln = natural logarithm

Reverse Formula (Calculate Interest Rate): r = exp(ln(2) / t) - 1

Rule of 72 Approximation: t ≈ 72 / (interest rate as percentage)

How Long Does It Take to Double Your Money?

  • 6% Annual Return: Money doubles in approximately 11.9 years
  • 8% Annual Return: Money doubles in approximately 9.0 years
  • 10% Annual Return: Money doubles in approximately 7.3 years
  • 12% Annual Return: Money doubles in approximately 6.1 years

How Long Will It Take for $10,000 to Double at 7 Compound Interest?

It will take approximately 10.24 years for $10,000 to double at 7% compound interest annually. This matches closely with the Rule of 72 estimate of about 10.29 years.

References

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