Top News

Do you also keep thinking by investing your hard-earned money in bank FD, mutual fund or any other scheme, “When will I make ₹ 1 lakh, ₹ 2 lakh?” or “How many years will it take for my money to triple?”

This is a question whose answer we all want to know. Often we think that it will be very difficult to calculate it, and it will require a big financial expert.

But what if we tell you that you can find out the answer yourself, without any calculator, in just 10 seconds? Yes, there are some simple and ‘magical rules’ in the world of investment, which are used by the world’s biggest investors. Today we are going to tell you about three of those biggest rules.

1. The Rule of 72: The Formula to ‘Double’ Money

This is the most famous and most useful rule. This tells you that according to the annual interest rate received on any investment, in how many years will your money double exactly.

What is the formula?
72 ÷ rate of interest = years taken for money to double

Example:

• Suppose, you invest money in an FD where you 6% Getting annual interest of Rs.
  • So, 72 ÷ 6 = 12 yearsThat means, it will take 12 years for your money to double.
• Whereas, if you invest money in a mutual fund SIP, where you get an average 12% Getting returns of Rs.
  • So, 72 ÷ 12 = 6 yearsHere your money will double in just 6 years!

2. Rule of 114: Formula to ‘Triple’ Money

Now coming to your main question – When will the money triple? For this the rule of 114 comes in handy.

What is the formula?
114 ÷ rate of interest = years taken for the money to triple

Example:

• if you 12% Getting annual returns of Rs.
  • So, 114 ÷ 12 = 9.5 yearsThat means, your money will triple in nine and a half years.

3. Rule of 144: The formula to ‘fourfold’ money

And if you want to go one step further and find out when your money will quadruple, you will have to remember the Rule of 144.

What is the formula?
144 ÷ rate of interest = years taken for the money to quadruple

Example:

• if you 12% Getting annual returns of Rs.
  • So, 144 ÷ 12 = 12 yearsThat means, your ₹1 lakh can become ₹4 lakh in just 12 years!

An important thing, which should be tied in a knot
Remember, these rules give you a rough estimate And it works best on compound interest. These help you understand what a huge and magical impact a slightly higher interest rate can have on your savings.

Now the next time someone asks you when your money will double, you won’t need any app or calculator!