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Magic Law of 72

Law of 72

Take the constant (72) and divide it by the (rate of return) to find out how many years it will take your money to double.

* 72 divided by 4 = 18
* 72 divided by 6 = 12
* 72 divided by 8 = 9
* 72 divided by 10 = 7.2
* 72 divided by 15 = 4.8

Which would you rather have?

Compare $10,000 invested over 20 years growing at different interest rates:

* 4% = $22,005
* 6% = $32,610
* 8% = $48,295
* 10% = $71,478
* 15% = $189,942

What if I saved money?

Take it a month at a time,
$200 invested each month for 20 years.

* 4% = $71,830
* 6% = $90,241
* 8% = $114,686
* 10% = $147,349
* 15% = $287,708

Your total contributions $47,200