How long until your money doubles?
Divide 72 by your annual rate of return to find approximately how many years it will take for your investment to double in value.
| Annual Return | Years to Double |
|---|---|
| 6% | ~12 years |
| 8% | ~9 years |
| 12% | ~6 years |
The gap between what your debt costs and what your investments earn is the engine of wealth. The same math works against you: at 3% inflation, purchasing power halves in about 24 years, and 18% credit card debt doubles in about 4 years.