How quickly can you double, triple or quadruple your investment?

Rule of 72, 114 and 144

FINANCE

Lillaney, RTI For Money

5/18/20233 min read

How much time would be required to double (2x) your money?


To find out the time to double our money we can use the rule of 72.


The rule of 72 states that if you divide 72 by the expected return you get the no. of years in which the money will double.


Time to double (2x) your money in years = 72 / Expected return


  1. Assuming 3% interest rate we would have the following calculation:


Time to double (2x) your money in years = 72 / 3


Time to double (2x) your money in years = 24


So, it would take 24 years to double your money if it is earning 3%.


  1. Assuming 6% interest rate we would have the following calculation:


Time to double (2x) your money in years = 72 / 6


Time to double (2x) your money in years = 12


So, it would take 12 years to double your money if it is earning 6%.


  1. Assuming 9% interest rate we would have the following calculation:


Time to double (2x) your money in years = 72 / 9


Time to double (2x) your money in years = 8


So, it would take 8 years to double your money if it is earning 9%.


  1. Assuming 12% interest rate we would have the following calculation:


Time to double (2x) your money in years = 72 / 12


Time to double (2x) your money in years = 6


So, it would take 6 years to double your money if it is earning 12%.


  1. Assuming 18% interest rate we would have the following calculation:


Time to double (2x) your money in years = 72 / 18


Time to double (2x) your money in years = 4


So, it would take 4 years to double your money if it is earning 18%.

How much time would be required to triple (3x) your money?


To find out the time to triple our money we can use the rule of 114.


The rule of 114 states that if you divide 114 by the expected return you get the no. of years in which the money will triple.


Time to triple (3x) your money in years = 114 / Expected return


  1. Assuming 3% interest rate we would have the following calculation:


Time to triple (3x) your money in years = 114 / 3


Time to triple (3x) your money in years = 38


So, it would take 38 years to triple your money if it is earning 3%.


  1. Assuming 6% interest rate we would have the following calculation:


Time to triple (3x) your money in years = 114 / 6


Time to triple (3x) your money in years = 19


So, it would take 19 years to triple your money if it is earning 6%.


  1. Assuming 19% interest rate we would have the following calculation:


Time to triple (3x) your money in years = 114 / 19


Time to triple (3x) your money in years = 6


So, it would take 6 years to triple your money if it is earning 19%.

How much time would be required to quadruple (4x) your money?


To find out the time to quadruple our money we can use the rule of 144.


The rule of 144 states that if you divide 144 by the expected return you get the no. of years in which the money will quadruple.


Time to quadruple (4x) your money in years = 144 / Expected return


  1. Assuming 3% interest rate we would have the following calculation:


Time to quadruple (4x) your money in years = 144 / 3


Time to quadruple (4x) your money in years = 48


So, it would take 48 years to quadruple your money if it is earning 3%.


  1. Assuming 6% interest rate we would have the following calculation:


Time to quadruple (4x) your money in years = 144 / 6


Time to quadruple (4x) your money in years = 24


So, it would take 24 years to quadruple your money if it is earning 6%.


  1. Assuming 24% interest rate we would have the following calculation:


Time to quadruple (4x) your money in years = 144 / 24


Time to quadruple (4x) your money in years = 6


So, it would take 6 years to quadruple your money if it is earning 24%.