For many investors, including residents, Non-Resident Indians(NRIs), and Overseas Citizens of India(OCIs), the goal is to grow their wealth and build long-term financial wealth significantly. To achieve this, investors often seek strategies that offer substantial returns over time. Use the Rule of 144—a valuable formula in finance to simplify the process of calculating how long it will take for an investment to quadruple in value. This rule offers a straightforward method to show the growth of your investments, helping you plan and strategize effectively. In this blog, we’ll explore the Rule of 144, how to apply it, and how it can assist you in reaching your financial goals.
What is Rule 144 in Investing?
The Rule of 144 is a financial principle used to calculate the number of years required for an investment to quadruple (increase four times) at a fixed annual interest rate. To apply this rule, divide 144 by the annual interest rate. For example, if the annual return rate is 10%, the calculation would be 144 ÷ 2, resulting in 14.4 years. This rule offers a simple and quick way for investors to approximate how long it will take for their investments to grow fourfold, making it very useful for long-term financial planning and investment decisions.
Also read: What is the Rule of 72 and How to use it to Double your Wealth?
Understanding the Rule of 144 and How to Use it?
The Rule of 144 is a convenient way to get an idea of how long it will take for an investment to quadruple, or grow four times, based on a fixed annual interest rate. The formula to calculate it is straightforward: You can find it out by dividing 144 by the annual interest rate. For example, let’s say you invest Rs 1,00,000 at an annual interest rate of 12%. To find out how long it will take for your investment to grow to Rs 4,00,000, you use the formula:
Number of years= 144/rate of interest= 144/12=12years
So, with a 12% annual rate of interest, it will take about 12 years for your Rs 1,00,000 investment to quadruple to Rs 4,00,000. This rule provides a quick and easy way to understand the time it will take for your investment to grow.
Let’s take a look at the table below and understand the amount invested, estimated rate of return, years to quadruple, and the future value for an investment of ₹20,000:
| Amount Invested | Estimated Rate of Return | Years to Quadruple (approx) | Future Value |
| Rs. 20,000 | 8% | 18 | Rs. 79,920 |
| Rs. 20,000 | 10% | 14 | Rs. 75,950 |
| Rs. 20,000 | 12% | 12 | Rs. 77,920 |
| Rs. 20,000 | 15% | 10 | Rs. 80,911 |
Also read: How understanding the Rule of 8-4-3 can turn your Rs 30,000 monthly into Rs 1.5 cr?
Can the Rule of 144 be applied to any type of investment?
Yes, the Rule of 144 is a versatile tool that can be applied to various types of investments, including stocks, bonds, mutual funds, and other assets. It helps investors understand the time it takes for their money to double, regardless of the investment vehicle.
Also read: 10 Mutual Funds That Doubled Wealth In 5 Years
Wrapping Up
The Rule of 144 is an important financial guideline for calculating the time required to quadruple an investment. By dividing 144 by the annual interest rate, investors can quickly calculate how long it will take for their money to grow four times. This rule provides a straightforward and efficient method for long-term financial planning, allowing investors to better understand and expect the growth potential of their investments. It also simplifies complex calculations, making it easier to set financial goals and strategize for future wealth planning.
Also read: What is the 15x15x15 Rule In Mutual Funds for NRIs?
Invest in NRI Mutual Funds with SBNRI
NRIs can now download the SBNRI App and choose to invest in different mutual schemes in India with ease and build wealth for the long run. You can also get detailed mutual fund advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
FAQs
What is the rule of 144 quadruple?
According to the Rule of 144, dividing 144 by the expected annual rate of return gives an estimate of how many years it will take for your investment to quadruple. For example, if the expected rate of return is 10%, dividing 144 by 10 gives you 14.4 years. So, at a 10% annual return, your investment will approximately quadruple in 14.4 years.
What is the rule 144 of investment?
Rule 144 calculates the time needed to quadruple an investment at a given annual interest rate. To use it, divide 144 by the interest rate. This rule is similar to the Rule of 72, which calculates the time to double an investment by dividing 72 by the interest rate. For example, if the interest rate is 10%, the Rule of 144 shows that it will take about 14.4 years to quadruple your investment (144 ÷ 10 = 14.4). This rule helps mutual fund investors estimate how long it will take for their investments to grow significantly.
What is the rule for tripling your money?
The Rule of 114 helps you calculate how long it will take for your money to triple. To use it, divide 114 by the annual rate of return. For example, if the rate of return is 10%, divide 114 by 10 to get 11.4 years. So, with a 10% return, your investment will triple in about 11.4 years. This rule works like the Rule of 72, which estimates the time to double your money.
What is the golden rule of money?
The golden rule of money is: Don’t spend more than you earn. This basic money management principle means living within your means by difference between needs and wants, avoiding unnecessary debt, and ensuring your spending is always less than your income. Following this rule keeps your finances healthy.
How do I determine the annual rate of return for my investments?
The annual rate of return can be based on historical performance, projected returns, or the average return of similar investments. It’s essential to consider factors such as market conditions, economic trends, and the specific characteristics of the investment.
Can I earn Rs 1 crore from mutual funds?
Yes, you can earn Rs 1 crore from mutual funds by following the rule of 15x15x15. With this rule and the power of compounding you can become a crorepati from mutual funds.
What is compounding?
The term compounding means that the small investments made regularly grow to become a significant amount in the long run.
Can NRIs become crorepati from mutual funds?
Yes, NRIs can invest in various mutual fund schemes in India. If an NRI follows the rule of 15x15x15 and invests Rs 15000 a month in SIP for 15 years with an expected rate of return of 15%, then they will become crorepati after 15 years with a wealth corpus of Rs 1 crore.
