What is the Rule of 72?

Background

The Rule of 72 is a mental math shortcut to estimate the number of years it takes for money to double at a fixed annual return: you divide 72 by the percentage rate.

Explanation

At 8% returns, money doubles in about 9 years (72 ÷ 8). At 12%, it doubles in roughly 6 years. While it is only an approximation and real returns fluctuate, it highlights why starting early matters so much.

Example

₹10 lakh at 9% roughly doubles every 8 years: ~₹20 lakh at 38, ~₹40 lakh at 46, ~₹80 lakh at 54 and ~₹1.6 crore at 62, assuming you do not withdraw and the rate holds.

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