Rule of 72 Calculator

Enter a growth rate to see how long money takes to double — the mental-math rule, the exact answer beside it, and the inflation flip side.

The most useful shortcut in finance

Divide 72 by an annual growth rate and you get, almost exactly, the years for money to double at that rate — no compound-interest formula required. This calculator runs the rule, prints the mathematically exact answer beside it so you can see how good the approximation is, and shows the flip side people forget: the same rule tells you how fast inflation halves your money’s value.

How to use it

  1. Enter the annual rate — an investment return, or an inflation rate.
  2. Read the doubling time.
  3. Compare the exact figure to see the rule’s accuracy.

The formula

years ≈ 72 ÷ rate% · exact: ln 2 ÷ ln(1 + rate)

A worked example

At 8%, the rule says 9 years; the exact answer is 9.01 — the approximation is that good in the everyday range. The compounding chain is where it gets powerful: at 8%, money doubles in 9, quadruples in 18, is 8× in 27 — and the same arithmetic run on 3% inflation says a currency’s purchasing power halves every 24 years, which reframes “safe” cash held for decades.

Common questions

Why 72 and not some other number?
72 sits near the true constant (≈69.3 for continuous compounding) while dividing cleanly by 2, 3, 4, 6, 8, 9 and 12 — chosen for mental math as much as accuracy.
When does the rule break down?
At extreme rates — below ~2% it underestimates slightly, above ~20% it overestimates. Between 4% and 12%, where real decisions live, it’s within weeks of exact.
Does it promise investment returns?
No — it converts an assumed rate into time. Whether any investment sustains that rate is the actual hard question, and no calculator answers it.