Rule of thumb · FinanceNº 59 / 167

114 triples, 144 quadruples

Divide 114 by the rate for tripling time, 144 for quadrupling.

Why it works

The same logarithmic trick as the Rule of 72, extended. At 7%: double in ~10 years, triple in ~16, quadruple in ~21.

When it fails

Same limitation as the Rule of 72 and worse at the extremes, because the error compounds over the longer horizon. At 2% the rule says 57 years to triple; the true figure is 55.5. Over that span inflation matters far more than the arithmetic — tripling in nominal terms may be no gain at all.

How wrong is it?

At 8% the rule says 14.25 yr and the exact answer is 14.275 yr — within half a percent. It holds to within 5% up to 19%, then drifts.

+5%0−5%11325Interest rate (%)

Same trick as 72, one step further out, and it drifts the same way for the same reason.

The rule against the exact answer, computed across the range. Inside the shaded band the shortcut is close enough to use; outside it, reach for the calculator.

Do it exactly

Estimate with the rule, then check it against the calculator that models it properly.

Open Compound Interest Calculator →

More in Finance

← PreviousDouble the tax, round up Next →Ten years earlier ≈ twice the pot

How long to triple your money?

Divide 114 by the rate for tripling time, 144 for quadrupling. The same logarithmic trick as the Rule of 72, extended.

Browse all 167 rules of thumb →