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RULE OF 72

Rule of 72 Calculator

Instantly find how long it takes to double your money at any CAGR, or what return you need to double in a target timeframe. Includes a comparison across savings, FD, PPF, and equity.

Rule of 72 Calculator

At 12% annual return, your money doubles in

6.0

years

Exact calculation: 6.12 years (Rule of 72 is a close approximation)

Formula: 72 ÷ 12 = 6.0 years

Doubling Time Comparison

InvestmentRateYears to DoubleDoubles in 20 yrs
Savings account (3.5%)3.5%20.6 yrs1× (0 doublings)
FD - SBI 5yr (7.0%)7%10.3 yrs2× (1 doublings)
PPF (7.1%)7.1%10.1 yrs2× (1 doublings)
Nifty avg CAGR (12%)12%6.0 yrs8× (3 doublings)
Midcap avg CAGR (15%)15%4.8 yrs16× (4 doublings)
Small cap avg (18%)18%4.0 yrs32× (5 doublings)
Inflation (6%)6%12.0 yrs2× (1 doublings)
Your Rate (12%)12%6.0 yrs8× (3 doublings)

HOW IT WORKS

Simple steps to get your result

1

Choose Your Mode

Know the rate? Find doubling years. Know the timeframe? Find required rate.

2

Enter Your Number

Input your annual return rate % or target number of years to double.

3

See Instantly

Get your answer and a comparison table across savings, FD, PPF, and equity investments.

FAQ

Frequently asked questions

What is the Rule of 72?+

Divide 72 by the annual return rate to find how many years it takes to double your money. At 12% CAGR: 72 ÷ 12 = 6 years. At 6% (inflation): 72 ÷ 6 = 12 years — meaning your money's purchasing power halves in 12 years at 6% inflation.

Is Rule of 72 accurate?+

It is a very close approximation. The exact formula uses natural logarithm: Years = ln(2) / ln(1 + rate). Rule of 72 is accurate within ±1% for rates between 6–20%. For very low (0–2%) or very high (25%+) rates, accuracy reduces.

Why 72 and not 70 or 69?+

69.3 (= 100 × ln(2)) is the mathematically exact constant. Rule of 69 works for continuous compounding. Rule of 72 is preferred because 72 has more divisors (2,3,4,6,8,9,12) making mental math easier.

How does this apply to inflation?+

Use the inflation rate in the Rule of 72 to find how fast purchasing power halves. At 6% inflation: 72 ÷ 6 = 12 years. Your ₹10 lakh will have the buying power of ₹5 lakh in just 12 years if not invested.

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