Need an easy way to determine how long it will take to either double or triple your returns? Or maybe you would be interested in figuring out who long it takes to halve the value of your money.
The Rule of 70
This rule will tell your how long for inflation to halve the value of your money. The trick is real simple just divide 70 by the expected rate of inflation.
If the expected inflation rate is 5%, then divide 70 by 5. At that rate, it will take about 14 years to halve the value of your money.
The Rule of 72
This rule will tell you how long it will take to double your money. Simply divide 72 by your growth rate.
Lets say your money is increasing with 8% per year; it will take 9 years to double your money.
The Rule of 115
If you are more interested in knowing when your money will triple, then you can do the same thing with The Rule of 72, but instead use 115.
If your money has a yearly growth rate of 5% then it will take 23 years to triple the value of your money.
Remember that this is just a trick so it will not be 100% accurate but it will give you a reasonable estimate.