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How Long Does it Take to Double, Triple, or Quadruple Your Money?

By JLP | May 4, 2007

UPDATE: For an interesting follow-up to this post, see The Rule of 72, 114, and 144

Have you ever wondered how long it would take to double your money? Triple? Quadriple? The answer depends on the rate of return. Naturally, the higher the rate of return, the less time it takes to double, triple, or quadruple your investment. It’s not hard to figure out if you have Excel, or you can just use the three graphics I created:

NOTE: Keep in mind that these graphics assume linear (straight line) growth, which never happens in the real world.

To Double Your Money…

How Long Does it Take to Double Your Money?

To Triple Your Money…

How Long Does it Take to Triple Your Money?

To Quadruple Your Money…

How Long Does it Take to Quadruple Your Money?

So, if you have $100,000 in your retirement account and you get an annual rate of return of 8%, it will take 18 years for that original $100,000 to grow to $400,000 (not counting any additional contributions).

I just thought you’d like to know.

Related:

The Rule of 72, 114, and 144

Topics: Financial Math Basics, Investing, Retirement Planning | 9 Comments »


9 Responses to “How Long Does it Take to Double, Triple, or Quadruple Your Money?”

  1. Kurt Says:
    May 4th, 2007 at 5:19 pm

    “Keep in mind that these graphics assume linear (straight line) growth, which never happens in the real world.”
    That’s not actually true. They assume constant growth rates which generates decidedly non-linear growth in the balance of your account.

  2. SML Says:
    May 4th, 2007 at 6:34 pm

    This is a chart form of the rule of 72. The rule let’s you know how long to double your money. Divide 72 by the rate of return and you get how long it takes to double the funds. Example $100 earning 8% takes 9 years to double. (and 18 years to quadruple ). I like it because I can do it in my head or with a handy calculator- no chart needed.

  3. HagenT Says:
    May 4th, 2007 at 10:14 pm

    …well, OK… but what will those future dollars actually be worth (purchasing power) ??

    That’s what one really wants to know for planning.

    Need a method to factor “inflation” into such ‘growth’ equations.

    Real U.S. inflation is currently running 5-10% per year, despite lesser pronouncements from the Federal bureaucracy.

    [Bonus Question: what causes inflation ?]

  4. JLP Says:
    May 4th, 2007 at 10:34 pm

    HagenT,

    You are correct. I ignored inflation in this calculation.

    “Real” inflation? Is that inflation adjusted for inflation? 5-10% per year? If that’s the case, you might as well be keeping your money under the mattress.

  5. broknowrchlatr Says:
    May 5th, 2007 at 7:38 am

    In order to take inflation into account, just use the ‘real’ return (return – inflation) when using these tables.

    So, at 9% interest and 3% inflation, your buying poer doubles in 11.9 years. Using this method, 6% is about the highest you could expect.

  6. lorax Says:
    May 6th, 2007 at 7:53 am

    > graphics assume linear (straight line) growth, which never happens in the real world.

    Well, it wasn’t THAT long ago that you could get a bond at 6%. :)

  7. Sabine S. Says:
    May 6th, 2007 at 3:25 pm

    This might interest your readers. This Dividend Calendar displays companies by their Ex-Dividend Date:
    http://sp500.us/dividends.php

    You may also sub-sort the list by Stock Symbol, Company Name, Market Cap, Yield, Rate, or Payment Date.

  8. » Weekly Review on Blueprint for Financial Prosperity Says:
    May 7th, 2007 at 7:31 am

    [...] JLP does some number crunches and discusses how long it takes to double, triple your money. [...]

  9. blog Says:
    June 17th, 2010 at 3:21 am

    well it is really great to see it but just doubling money is not enough for me..i want it to Quadruple every 6 months …greed never ends…

Comments