INCOME TAX19 Sept 2026
Rule of 72 explained: How long will ₹1 lakh take to double at 6%, 8% and 10%?
The Rule of 72 is a quick shortcut to guess how long your money takes to double. Just divide 72 by the yearly return. At 10%, ₹1 lakh may double in about 7.2 years; at 8%, around 9 years; at 6%, about 12 years. Remember, returns, taxes, fees and inflation can change the final result. Treat it as a rough estimate, not a promise.
Key Statutory Highlights
- The Rule of 72 works by dividing 72 by the annual rate of return to roughly estimate doubling time.
- At an assumed 6% return, ₹1 lakh may take about 12 years to become ₹2 lakh.
- At an assumed 10% return, ₹1 lakh may double in about 7.2 years.
- Actual outcomes can vary because taxes, fees and inflation affect the final result.
Actionable Advice for Taxpayers / Founders:Use the Rule of 72 only as a quick estimate, not a guarantee. Before investing, check the product's actual return pattern, costs, taxes and risks, since these can change how long your money really takes to double.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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