Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is the Rule of 72?

By Jon Quast – Updated Dec 18, 2024 at 10:45AM

Key Points

  • Rule of 72 estimates time for investment to double: divide 72 by annual growth rate.
  • Understanding compound returns via Rule of 72 aids in setting financial goals.
  • Use of Rule 72 can direct investments, minimizing need for high-risk strategies.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.