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Rule of 72
Term category: General Investing
In 10 words or less: A trick to determine how long it'll take for an investment to double in value.

Definition: A rule that allows investors to calculate how long it'll take their money to double by dividing 72 by their expected return.

StockJargon Advice: For example, if you are expecting a 10% annual return on your investment, you would divide 72 by 10 to get 7.2. It would take 7.2 years for your money to double in this investment.

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