How Long to Double My Money? The Rule of 72.

If you want to know how long it takes for your money to double in investing, it’s easy. Simply divide the return of the investment (3%, 6%, 12%, 20%, etc.. ) into 72. The result is the number of years that it takes for that investment to double.

eg – you invest in a CD at 2%. 72 / 2 = 36. Your money will double in 36 years.

eg2 – you invest in a house that you expect to return 8% per year. 72 / 8 = 9. Your money will double in 9 years.

eg3 – you invest in a risky new business that you expect to return 24% per year. 72 / 24 = 3. Your money will double in 3 years.

Of course, this is just the math if things go as planned. The higher the expected the return, typically the higher the risk that things don’t go as planned and your investment may be at risk of loss.