Home > Personal Finance Center  > Planning, Budgeting > How Quickly Will Your Money Grow?

How Quickly Will Your Money Grow?

How Quickly Will Your Money Grow?

Financial Organization, Planning, Budgeting

How Quickly Will Your Money Grow?

There are a number of ways to determine how quickly your money will grow, but here’s a simple one: Use the rule of 72. It’s easy: Divide your anticipated rate of return into 72, and that’s how long it will take you to double your investment. For example, say you have $10,000 and you anticipated receiving an 8% annual return. Divide 8 into 72; it should take approximately 9 years for you to have $20,000.

The differences in return can have a dramatic effect. Averaging a 10% return will take a little over 7 years to double your money; a 5% return will take over 14 years. Remember, the rule of 72 is a way to estimate the effects of different rates of return. It assumes that your return will remain stable. So it’s not perfect – but it can give you a quick sense of the dramatic effect different rates of return have on your ability to build wealth.

What is New

Stock Market

Stocks headlines
Index Last Change
Dow 16563.30 -317.06
Nasdaq 4369.77 -93.13
S&P 500 1930.67 -39.40
NYSE 10726.43 -203.36
AMEX 2706.92 -42.78
Input stock ticker 
Or company name