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What is Rule of 72? — Meaning, Definition & Example

Definition

The Rule of 72 is a quick mental math formula to estimate how many years it takes for an investment to double. Simply divide 72 by the annual interest rate. It works best for rates between 6-10%.

💡 Real Example

At 12% annual return, money doubles in 72/12 = 6 years. At 8%, it takes 72/8 = 9 years. At FD rates of 7%, it takes about 10.3 years.

🇮🇳 Rule of 72 in Hindi / हिंदी में

72 का नियम — 72 का नियम एक त्वरित मानसिक गणित सूत्र है जो अनुमान लगाता है कि निवेश को दोगुना होने में कितने वर्ष लगेंगे। बस 72 को वार्षिक ब्याज दर से विभाजित करें।

Rule of 72 (Hinglish) — Rule of 72 ek quick formula hai jo batata hai ki investment kitne saalon mein double hogi. Bas 72 ko annual interest rate se divide karo. 12% pe 6 saal, 8% pe 9 saal.

❓ Frequently Asked Questions

What is Rule of 72 in simple words?
The Rule of 72 is a quick mental math formula to estimate how many years it takes for an investment to double. Simply divide 72 by the annual interest rate. It works best for rates between 6-10%.
Can you give an example of Rule of 72?
At 12% annual return, money doubles in 72/12 = 6 years. At 8%, it takes 72/8 = 9 years. At FD rates of 7%, it takes about 10.3 years.
What is Rule of 72 meaning in Hindi?
In Hindi, Rule of 72 is called 72 का नियम. 72 का नियम एक त्वरित मानसिक गणित सूत्र है जो अनुमान लगाता है कि निवेश को दोगुना होने में कितने वर्ष लगेंगे। बस 72 को वार्षिक ब्याज दर से विभाजित करें।