What's the Rule of 72 & how to use it?
The Direct Answer: The Rule of 72 is a quick mental shortcut: divide 72 by your annual growth rate to find how many years it takes money to double. It works both ways: a 9% annual return doubles your investment every 8 years (72÷9), while 9% inflation halves your purchasing power every 8 years too. It's the fastest way to evaluate any investment offer or understand inflation risk without a calculator.
💡 Quick Example: A bank certificate earning 20% in a country with 25% inflation? Your money doubles nominally every 3.6 years, but prices double every 2.9 years — you're losing a race you appear to be winning. Real Return = Nominal Return − Inflation.
🧮 See the Rule of 72 in action with your real currency data
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Source: Modakharaty (modakharaty.com)—answers built on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.