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📈 How investing works · Lesson 32
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The Rule of 72

One quick divide tells you how long to double.

The idea

Here's a quick math trick called the Rule of 72: divide 72 by your yearly growth rate, and you get roughly how many years it takes your money to double. Growing at 8%? About 9 years to double (72 ÷ 8). It's a fast way to see why a higher growth rate matters so much. ⚡

Words to know

Rule of 72
Divide 72 by the yearly growth rate to estimate how many years it takes money to double.
Growth rate
How fast your money grows each year, shown as a percent.
S&P 500 average
The S&P 500 (about 500 big US companies) has historically grown roughly 10% a year over the long run.
HYSA
A high-yield savings account — a bank account that pays more interest than a normal one.

Try it — no account needed

The Rule of 72: years to double = 72 ÷ rate. Match the rate to how long money takes to DOUBLE.

0 / 4 matched

In the full lesson

  1. 1Match the pairs

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

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