Rule of 72 explained: This simple math formula that separates savers from investors; here's how  

For most investors, wealth creation is not about chasing the next big opportunity — it’s about understanding time and the quiet power of compounding. Financial planners often describe compounding as the eighth wonder of the world — a process where not just your principal, but the interest earned on it, starts generating more returns over time. Unlike simple interest, which grows linearly, compound interest multiplies because it is calculated on both the principal and the accumulated interest, leading to exponential growth. Advertisement

To simplify this idea, experts often refer to the Rule of 72 — a quick mental formula that helps investors estimate how long it will take for their money to double at a given rate of return.

The simple math behind exponential growth

According to CA Niti