Saving: Rule of 72
Benefits: This worksheet is set up to be used to illustrate the “Rule of 72.” You can readily calculate how long it will take your money to double by dividing the number 72 by the interest rate. For example, at 2 percent interest, it will take approximately 36 years for invested money to double. But it will only take 9 years at an 8 percent rate of return.
This potential for greater rates of return illustrates the wisdom behind comparison shopping to obtain the highest interest rates possible for different saving and investing vehicles.
By selecting the "example" tab, you can enter in an interest rate of your choosing and the spreadsheet will automatically calculate the number of years that it will take for your money to double at that corresponding rate.
File Description: The file is a Microsoft Excel spreadsheet template.
- Download this spreadsheet template just once, and be able to use it over and over again.
- The spreadsheet contains a chart which illustrates the Rule of 72.
- The spreadsheet also contains the formula for the Rule of 72 which allows you to enter various interest rates and have the number of years calculated automatically.
Attachments: Rule of 72