What Is the Rule of 72 and How Can Investors Use It?

The beauty of the Rule of 72 is that it can be calculated by the average 10-year-old.

The Rule of 72 is a solid tool for estimating the effects of compound interest and can be used to gauge the potential growth of your investments over time. Dreamstime/TCA

By Charles Lewis Sizemore From Kiplinger’s Personal Finance

If you’ve dabbled in investing, you’ve likely heard of the “Rule of 72.” It’s a back-of-the-envelope metric for calculating how quickly an investment will double in value.