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Rule of 72

Years to double an investment at a given rate — approx vs exact.

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≈ 12.00 yr (exact 11.90 yr)

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About Rule of 72

Estimate years to double money at a given rate — rule of 72 versus exact ln math.

Approx years = 72 / rate%. Exact = ln(2)/ln(1+r). Both shown so you can see the error band.

How to use Rule of 72

  1. 1Enter annual return %.
  2. 2Compare approximate and exact doubling times.

Common questions

When is the rule accurate?

Best around mid-single-digit rates; diverge more at extremes.

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