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How Compound Interest Works — With Real Examples

The Rule of 72

Divide 72 by your annual return rate to estimate how many years it takes to double your money. At 7% return, your money doubles roughly every 10.3 years. At 10%, it doubles every 7.2 years.

Years to Double = 72 ÷ Annual Return Rate

Time Is the Multiplier

A $10,000 investment at 7% annual return grows to roughly $76,123 after 30 years — without adding another dollar. Add $500/month and it becomes over $600,000. The earlier you start, the less you need to save.

Model your own compound growth

Use our FIRE calculator to see how your savings grow over time with compound interest.

Open FIRE Calculator