How long does it take to double your money? (2024)

FAQs

How long does it take to double your money? ›

Years to double your money = 72 ÷ assumed rate of return. Consider: You've got $10,000 to invest and you hope to earn 8% over time. Just divide 72 by 8—which equals 9. Now you know it'll take approximately 9 years to grow your $10,000 to $20,000.

Very few investors know how long it takes to double their money. Rule of 72 can be of help. Divide 72 by the expected rate of return and the answer is the number of years required to double your money. For example, if a bond offers 6 percent rate of interest per year, then you will double your money in 12 years.

For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72 ÷ 10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.10^7.3 = 2).

If your ROI is 100%, you've doubled your initial investment. Return on Investment can help you make decisions between competing alternatives. If you deposit money in a savings account, the return on your investment will be equal to the interest rate that the bank gives you to hold your money.

The classic approach of doubling your money involves investing in a diversified portfolio of stocks and bonds and is probably the one that applies to most investors. Investing to double your money can be done safely over several years but there's more of a risk of losing most or all of your money if you're impatient.

Conclusion. To sum up, there are several ways to obtain a $2000 loan in your pocket today quickly. Consider taking on gig work, selling items online, offering freelance services, borrowing from friends or family, applying for a same-day loan, or seeking emergency assistance programs.

One way to potentially double $5,000 is by investing it in a 401(k) account, especially if your employer matches your contributions. For example, if you invest $5,000 and your employer offers to fully match at 100%, you could start with a total of $10,000 in your account.

One of the easiest ways to double $1,000 is to invest it in a 401(k) and get the employer match. For example, if your employer matches your contributions dollar for dollar, you'll get a $1,000 match on your $1,000 contribution.

How do I double money in 5 years? ›

Instead, your aim should be to maintain an ideal equity-debt mix rather than maximising your returns. Five years is too short a period to expect a doubling of your investment. To achieve this target, you would need to earn a yearly return of 15 per cent, which seems highly ambitious, even for an all-equity portfolio.

The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

One of those tools is known as the Rule 72. For example, let's say you have saved $50,000 and your 401(k) holdings historically has a rate of return of 8%. 72 divided by 8 equals 9 years until your investment is estimated to double to $100,000.

How can I double my $1,000? One of the easiest ways to double $1,000 is to invest it in a 401(k) and get the employer match. For example, if your employer matches your contributions dollar for dollar, you'll get a $1,000 match on your $1,000 contribution.

The result is the number of years it will take, roughly, to double your money. For example, if the expected annual return of a bank Certificate of Deposit (CD) is 2.35% and you have $1,000 to invest, it will take 72/2.35 or 30.64 years for you to double your original investment to $2,000.

The classic approach of doubling your money involves investing in a diversified portfolio of stocks and bonds and is probably the one that applies to most investors. Investing to double your money can be done safely over several years but there's more of a risk of losing most or all of your money if you're impatient.