Rule of 72 Calculator
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FAQs
Q1. What is the Rule of 72?
The Rule of 72 is a simple formula to estimate how long it will take for an investment to double in value based on a fixed annual rate of return.
Q2. How do you calculate the Rule of 72?
You divide 72 by the annual interest rate to get an approximate number of years for your investment to double.
Q3. Does the calculator consider compounding frequency?
The basic rule assumes annual compounding. More detailed calculators can adjust for monthly or quarterly compounding.
Q4. Is the Rule of 72 useful for short-term investments?
Not really. It’s best suited for long-term growth projections with stable rates.