WildComb Simulation
When does my money double?
At 7 % a year an amount doubles in about 10.3 years by the rule of 72, and in 10.2 years worked out exactly.
Assumptions: US$10,000 once, 7 % a year, no payments, before costs and taxes.
At 7 % a year an amount doubles after 10.2 years in this calculation.
The simulator opens on the values of this example. Time turns freely, the other numbers with Pro.
Simulation, not a forecast and not investment advice.
wildcomb.appThe rule of 72 divides 72 by the return in percent and gives the years until an amount doubles. It is a rule of thumb, and for returns of about 6 to 10 % it is very close to the exact calculation.
So US$10,000 become US$20,000 after 10.2 years. The rule holds without payments, costs and taxes. The simulator works with monthly payments.
Frequently asked
How accurate is the rule of 72?
At 7 % a year its 10.3 years are close to the exact 10.2 years. At very high returns it gets less accurate.
Does it work for inflation?
Yes. 72 divided by the inflation rate gives the years after which prices double.
Why 72?
It is close to 100 times the natural logarithm of 2 and divides by many numbers, which makes it easy to use in your head.
Calculation: WildComb Simulation, the same functions as the simulator. Method
nominal · before costs and taxes · amounts in USD