Rule of 72 – Double your money

Rule of 72 is the formular that help you to determine how many years your money will become double by the given annual interest rate. It can also use to calculate how much the interest your money should earn in order to double up your money in the given years.

Example 1: Number of years you need in order to double your money = 72 / Annual interest rate

Divide 72 by the annual interest rate and you’ll get the number of years you need in order to double your money. For example, you are being offered by a financial institution a 10 percent interest rate per year. That’s 72 divided by 10 and the result is 7.2. It will take a little over 7.2 years for your investment to double on a 10 percent annual interest rate.


Example 2: Annual interest rate to Double Your Money= 72 / Number of years

Divide 72 by the number of years and you’ll get the annual interest rate required to double your money. For example, you invested in a double your money program for 6 years and you want to know the interest rate you’ll earn per year. That’s 72 divided by 6 and the result is 12. You’ll earn 12 percent annual interest rate.


By the way, Double Your Money program is usually offered by banks. Before, they usually give it on a 5-year basis. Nowadays, I think it’s 6 years. An annual interest rate of about 10 percent or above is a good return, an investment you may want to check.


However, this is offered on limited time only and limited slots. So if you are interested, better ask your trusted banks about this and get a tip on when they will be having this kind of offer. Also, banks usually require a minimum of Php 100,000 or Php 200,000 investment in this.

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