Rule of 72 Calculator Rule of 72 Derivation Rule of 72 Explanation Rule of 72

Rule of 72 Explanation and Calculator

You want intelligent decisions when it comes to your investments?

The Rule of 72 is a helpful tool that allows you to estimate without complicated formulas and financial equations, how long it takes to double an investment.

In this post, you'll learn exactly what the Rule of 72 is, how it works and how you can apply it.

Bonus: With the 72 calculator you can easily calculate your potential return!

Table of contents

What is the Rule of 72? Simple Rule of 72 Explanation

The Rule of 72 is a useful Financial toolwhich you can use to estimate how long it would take for your Double investments.

The Calculation is very simpleDivide the number 72 by the expected return on your investment, and the result is the approximate number of years it would take for your money to double.

72 ÷ expected return = number of years until doubling

Simple, isn't it? Let's have a Example make.

For example, if you invest in an asset with a Yield from 8 % invest, it would be about 9 years take time for your Investment doubled (72 divided by 8 = 9).

With a little practice, the calculation of 72 is easy to do in your head. You can also use a calculator or, for example, our Rule of 72 calculator use.

Top recommendations for 2026

Your key to success! Discover our top recommendations from real testimonials.

Swiss bank account recommendation test experience report account
Rule of 72 Explanation and Calculator 1
ETF buy Switzerland recommendation savings plan exchange traded funds investing
Pillar 3a Comparison Recommendation Experience Report
Swiss Online Broker Recommendation Test Comparison
Bank account recommendation best Swiss bank account test

Rule of 72 calculator

The 72 Calculator is a financial calculator that allows you to calculate how long it will take for investments to pay off. Double at different fixed interest rates.


Where and how you can use the 72 calculator?

How you can make decisions easier in everyday life with the rule of 72

Let's say you are thinking of making one of the following two investments:

  1. Investment 1 is a ETF on the SPI with 0.3% fees per year. From the SPI you expect 7% return per year. Deducting the annual fee results in a net return of 6.7% per year.
  2. Investment 2 is a active fund with 1.0% fees per year. The fund has the SPI as benchmark and you therefore also expect 7% return per year. Deducting the ongoing charges results in a net return of 6.0% per year.

 

Now when does which of the above Investments a doubling?

With the rule of 72 we can calculate that it is just under 11 years would take until Investment 1 doubled (72 divided by 6.7 = 10.7).
With investment 2 it takes 12 yearsuntil Investment 2 doubled (72 divided by 6.0 = 12).

So if you're looking for a faster return, Investment 1 might be the better choice for you.

3 important tips for implementing the Rule of 72 in everyday life

The Rule of 72 is a great tool to make informed decisions about your investments. That's how you get the best out of her:

  1. Know your goals: It is important that you are clear about the purpose of your investment before you make a decision.
  2. Understand the rules of compound interest: The rule of 72 works in conjunction with the concept of compound interest, i.e. if you receive interest on top of your original investment (plus interest on the additional sum), you benefit from a higher total return
  3. Use compound interest to your advantage: In order for compound interest to work for you, it pays to invest for the long term. You should pay attention to low fees and re-investments. For example, do not consume dividends, but reinvest them.

Our financial tips for 2026

"Intelligent people learn from the mistakes of others".

We have compiled our top selection for you from all our tests and experience reports:

Online broker comparison trading platforms comparison Swiss broker comparison test
Swiss bank account recommendation test experience report account
swiizerfranke ebook investment guide switzerland pdf download
Pillar 3a Comparison Recommendation Experience Report
Crypto Broker Switzerland Comparison Buy Bitcoin
swiss online finance course investing pensions online learning live calls swiss online finance course

Conclusion - When to use the Rule of 72 and its benefits

Basically, the Rule of 72 is a useful tool for the Estimating the return on individual investments. The rule can help you understand when to start, 1001TP3Gain from your investments or when your money has doubled.

Was the Rule of 72 already known? Feel free to share in the comments where you use them in your everyday life.

To understand how compound interest doubles your investments, you should read the Contribution about long-term investments be sure to read.

Write a comment

Your e-mail address will not be published. Required fields are marked with * marked.