Power of Compounding: Rule of 114, 144; how much return you will get on Rs 1 lakh investment in 5, 9 and 13 years? See calculations
Learn how the power of compounding can grow your investment using the Rule of 114 and Rule of 144. Discover how Rs 1 lakh can triple or quadruple in 5, 9, or 13 years.
Compounding is a powerful tool that can significantly grow your investments over time. By understanding the Rule of 114 and Rule of 144, you can estimate how long it will take for your money to triple or quadruple at a given rate of return. In this article, we’ll show you calculations to see how an investment of Rs 1 lakh can grow in 5, 9, or 13 years. Maximize your returns by using these simple yet effective compounding strategies for long-term wealth growth.
Purpose:
Determines how long it takes for your investment to triple.
Rule of 114: Formula
Tripling Time = 114 / Expected Rate of Return
Rule of 144: Formula
Quadrupling Time = 144 / Expected Rate of Return
In 5 years:
Tripling time = 114 / 10 = 11.4 years
- In 5 years, the investment won’t triple yet.
In 9 years:
The investment will still be less than triple but growing close (since 9 years < 11.4 years).
In 13 years:
The investment will not fully quadruple (since 13 years is less than 14.4 years), but it will be close to quadrupling.
The investment will not fully quadruple (since 13 years is less than 14.4 years), but it will be close to quadrupling.
Rule of 114: Feature
Rule of 114 helps estimate tripling time.
Rule of 144: Feature
Rule of 144 helps estimate quadrupling time.