Education
The Rule of 72: A Simple Way to Understand Growth
The Rule of 72 is a quick way to estimate how long it may take for money to double. You divide 72 by the annual growth rate to get the approximate number of years.
For example, at a 6% annual return, money may double in about 12 years. At a 12% annual return, it may double in about 6 years.
This simple rule helps show the power of time, growth, and compounding. It also reminds us that financial planning is not only about how much you save, but how intentionally your money is positioned.
Small differences in growth may not feel urgent today, but over 10, 20, or 30 years, they can change the financial options available to you.
72 ÷ annual growth rate= years to double
Example: 72 ÷ 6 = 12 years
Rule of 72
Hypothetical example starting with $10,000 at age 29. Actual results may vary.
Doubles every
72 years
- Age 29$10,000
- Age 101$20,000
Doubles every
18 years
- Age 29$10,000
- Age 47$20,000
- Age 65$40,000
Doubles every
12 years
- Age 29$10,000
- Age 41$20,000
- Age 53$40,000
- Age 65$80,000
Doubles every
6 years
- Age 29$10,000
- Age 35$20,000
- Age 41$40,000
- Age 47$80,000
- Age 53$160,000
- Age 59$320,000
- Age 65$640,000
- Age 71$1,280,000
The Rule of 72 is not a guarantee. It is a simple educational tool that can help you ask better questions and make more informed decisions.
- 01Do you know how long it may take your current savings to double?
- 02Is your money growing at a pace that supports your future goals?
- 03Are you using time as part of your financial strategy?
- 04Is your plan balanced between growth, protection, and access?
- 05What would change if you had more clarity around your financial timeline?
Want to understand what this could mean for your own financial picture?
A financial reset conversation can help you look at your timeline, goals, and protection needs with more clarity.
This example is hypothetical and for educational purposes only. It assumes a fixed annual compound growth rate and does not account for taxes, fees, inflation, market volatility, withdrawals, product-specific limitations, or market risk. Actual results may vary. This information is not intended as financial, investment, tax, or legal advice. Please consult with a qualified professional regarding your individual situation.