Money
Visualized: How Long Does it Take to Double Your Money?
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Visualized: How Long Does it Take to Double Your Money?
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At first glance, a 7% return on your investment may not seem that impressive. Yet what if you heard that your money could double in roughly 10 years?
The above graphic takes the rule of 72 shortcut and uses the more precise logarithmic formula to show how long it takes to grow your money at different annualized returns.
Why it Pays to Know the Math
Using the classic rule of 72, an investor can estimate how long it takes to double their money. At 7% annual returns, an investor would see $10,000 grow to $20,000 in about a decade by taking 72 and dividing it by 7%, the rate of return.
While the rule of 72 serves as a guide to estimating when your money will double, the more accurate way to arrive at this number is through a logarithmic equation.
In short, it divides the natural log of 2 by the natural log of 1 and adds this to the rate of return. We can see in the table below how leads to different results from the rule of 72:
Rate of Return | Rule of 72 # of Years to Double Money | Logarithmic Formula # of Years to Double Money |
---|---|---|
2% | 36.0 | 35.0 |
3% | 24.0 | 23.5 |
4% | 18.0 | 17.7 |
5% | 14.4 | 14.2 |
6% | 12.0 | 11.9 |
7% | 10.3 | 10.2 |
8% | 9.0 | 9.0 |
9% | 8.0 | 8.0 |
10% | 7.2 | 7.3 |
11% | 6.5 | 6.6 |
12% | 6.0 | 6.1 |
13% | 5.5 | 5.7 |
14% | 5.1 | 5.3 |
15% | 4.8 | 5.0 |
16% | 4.5 | 4.7 |
17% | 4.2 | 4.4 |
18% | 4.0 | 4.2 |
19% | 3.8 | 4.0 |
20% | 3.6 | 3.8 |
Consider if an investor put their money in the S&P 500. Historically, it has averaged 11.5% returns between 1928 and 2022. In 6.4 years, their money would double, assuming these average returns.
If they were to put this money in a savings account, where the average savings rate is 0.6%, it would take 120 more years for their money to reach this potential.
In real terms, which takes inflation into account, an investor would see their money lose value if they parked it in a savings account. Historically, inflation has averaged 3.3% over the last century.
Historical Asset Returns
Here’s how often different assets double, based on historical returns between 1928 and 2022:
Asset | Average Annual Return 1928-2022 | # of Years to Double Money | End Value of $100 Invested 1928-2022 |
---|---|---|---|
3-Month T Bill | +3.32% | 21.22 | $2,140.51 |
Real Estate | +4.42% | 16.03 | $5,121.52 |
U.S. T Bond | +4.87% | 14.58 | $7,006.75 |
Gold | +6.48% | 11.04 | $8,866.76 |
Corporate Bonds* | +6.96% | 10.30 | $46,379.53 |
S&P 500** | +11.51% | 6.36 | $624,534.55 |
Source: NYU Stern. *Represents Baa corporate bonds, which are considered investment grade. **Includes reinvested dividends.
We can see that 3-month T-Bills, often considered among the safest assets, doubled about every 21 years. Often, investors consider this a place to put cash that is low-risk and highly liquid.
Interestingly, real estate assets had returns of 4.4%, doubling roughly every 16 years. Between 1928 and 2022, the value of $100 invested in real estate assets would be worth $5,121.52. By contrast, the value of $100 invested in the S&P 500, including reinvested dividends, would have reached over $624,000.
Data from NYU Stern shows that the S&P 500 has doubled about 10 times since 1949—through recessions and bull markets—illustrating the power of investing over the long run.
Money
Ranked: Top Countries for Foreign Direct Investment Flows
Take a look at changes in foreign direct investment flows over a decade, analyzing the top destinations and biggest investors.

One of the most significant phenomena in 21st-century globalization, driven by the ascent of multinational corporations and the removal of investing barriers, is the vast cross-border flow of foreign capital.
To analyze recent trends, Samidha Nayak utilized World Bank data spanning 2012–2022, charting the top 10 destinations for foreign direct investment (FDI) and the leading investing countries annually.
Countries With the Most FDI Inflows (2012–2022)
In 2012, the United States had the highest FDI inflow, attracting about $250 billion in investment from the rest of the world.
At second place, China’s FDI inflows stood about $9 billion lower at $241 billion.
The middle ranks have representatives from Europe (Netherlands, Cyprus), from Asia (Hong Kong) and from South America (Brazil).
Towards the bottom, three OECD countries—Germany, Ireland, and Australia—all attracted an average of $60 billion in foreign investment.
Unexpectedly, the British Virgin Islands came in 8th. Their lack of corporate tax makes it a popular place for companies to headquarter, in turn attracting FDI inflows.
2012 | Country | 2012 Inflows (USD Billion) | 2022 | Country | 2022 Inflows (USD Billion) |
---|---|---|---|---|---|
1 | 🇺🇸 U.S. | $250.35 | 1 | 🇺🇸 U.S. | $388.08 |
2 | 🇨🇳 China | $241.21 | 2 | 🇨🇳 China | $180.17 |
3 | 🇳🇱 Netherlands | $239.67 | 3 | 🇸🇬 Singapore | $140.84 |
4 | 🇧🇷 Brazil | $92.57 | 4 | 🇭🇰 Hong Kong | $120.95 |
5 | 🇭🇰 Hong Kong | $74.89 | 5 | 🇫🇷 France | $105.42 |
6 | 🇨🇾 Cyprus | $69.97 | 6 | 🇧🇷 Brazil | $91.50 |
7 | 🇩🇪 Germany | $65.44 | 7 | 🇦🇺 Australia | $67.12 |
8 | 🇻🇬 British Virgin Islands | $61.12 | 8 | 🇨🇦 Canada | $53.71 |
9 | 🇮🇪 Ireland | $58.09 | 9 | 🇸🇪 Sweden | $50.05 |
10 | 🇦🇺 Australia | $57.55 | 10 | 🇮🇳 India | $49.94 |
Ten years later however, the top 10 saw a shuffle. The U.S. and China retained their top spots, but the difference grew much larger—with the U.S. attracting nearly 50% more foreign investment ($388 billion) than China ($180 billion).
Singapore, which first appeared in the rankings in 2014, took third place with $141 billion.
Meanwhile the bottom half changed almost entirely with France, Canada, Sweden, and India replacing Cyprus, Germany, the British Virgin Islands, and Ireland.
Countries With the Most FDI Outflows (2012–2022)
Unlike the ranks of net inflows, the top 10 countries with the highest FDI outflows have stayed essentially the same.
The U.S. topped the list in both ends of the decade, despite briefly falling out of the top 10 entirely in 2018. There were only three new entrants (France, Australia, and the UK) in 2022 compared to 10 years prior, with Cyprus, Switzerland, and the British Virgin Islands dropping out of top spots.
2012 | Country | 2012 Outflows (USD Billion) | 2022 | Country | 2022 Outflows (USD Billion) |
---|---|---|---|---|---|
1 | 🇺🇸 U.S. | $377.24 | 1 | 🇺🇸 U.S. | $426.25 |
2 | 🇳🇱 Netherlands | $237.94 | 2 | 🇩🇪 Germany | $178.87 |
3 | 🇯🇵 Japan | $117.63 | 3 | 🇯🇵 Japan | $175.40 |
4 | 🇩🇪 Germany | $99.08 | 4 | 🇬🇧 UK | $158.93 |
5 | 🇭🇰 Hong Kong | $88.12 | 5 | 🇨🇳 China | $149.69 |
6 | 🇨🇾 Cyprus | $75.25 | 6 | 🇳🇱 Netherlands | $125.89 |
7 | 🇨🇳 China | $64.96 | 7 | 🇦🇺 Australia | $123.36 |
8 | 🇨🇦 Canada | $62.25 | 8 | 🇫🇷 France | $118.76 |
9 | 🇨🇭Switzerland | $54.30 | 9 | 🇭🇰 Hong Kong | $106.86 |
10 | 🇻🇬 British Virgin Islands | $53.94 | 10 | 🇨🇦 Canada | $83.11 |
Many of the countries who are in the top ranks for inflows (U.S., China, Canada, Australia) are also in the top ranks for outflows both in 2012 and 2022.
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