How long does it take for money to double in the stock market?

If your money is in a savings account earning 3\% a year, it will take 24 years to double your money (72 / 3 = 24). If your money is in a stock mutual fund that you expect will average 8\% a year, it will take you nine years to double your money (72 / 8 = 9).

How much money would I have if I invested in the S&P 500?

Stock market returns since 1965 If you invested $100 in the S&P 500 at the beginning of 1965, you would have about $26,208.48 at the beginning of 2021, assuming you reinvested all dividends. This is a return on investment of 26,108.48\%, or 10.33\% per year.

How long does it take to Double Your Money?

Simply divide  72 by the presumed growth rate to get a rough idea on how long it will take for your money to double. For example, an investment growing at 7.2\% a year would double in 10 years. At 8\% growth, it would take 9 years to double your investment. However, this “rule of thumb” is not 100\% correct.

How fast will your investments double in value?

The first is the “rule of 72” – a simple rule of thumb to help you determine how fast your investments will double in value at certain rates of return. Simply divide 72 by the presumed growth rate to get a rough idea on how long it will take for your money to double.

How often can you Double Your Money in the stock market?

We saw in the previous section that investing in the S&P 500 has historically allowed investors to double their money about every six or seven years. Your initial $1,000 investment will grow to $2,000 by year 7, $4,000 by year 14, and $6,000 by year 18.

What is the average annual return of the S&P 500?

According to Standard and Poor’s, the average annualized return of the S&P 500 from 1926 to 2010 was 12.01\%. At 12\%, you could double your initial investment every six years (72 divided by 12).