The Rule of 72

15 Sep 2022

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The Rule of 72 is a simple calculation to estimate how long it takes to double your money given a specified rate of return. By dividing 72 by the annual rate of return, you get a rough estimate of how many years it will take for the initial investment to double.

72 ÷ Annual rate of return = Years for Investment to Double

Annual Return (%) 5% 10% 15% 20%
  72/5 72/10 72/15 72/20
Years to Double (#) 14 Years 7 Years 5 Years 4 Years

Inflation Estimate

The Rule of 72 is also handy for estimating impact of inflation. It will return the number of years until the initial value has been eroded in half, rather than doubling. You know how quickly you can lose purchasing power during periods of inflation.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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