Doubling Time Calculator

| Added in Business Finance

How to Use the Doubling Time Calculator

The doubling time calculator determines how many periods it takes for a quantity to double given a constant percentage growth rate. Enter your percent increase per period to find the doubling time.

Formula

The doubling time formula is:

$$
t_d = \frac{\ln(2)}{\ln(1 + r)}
$$

Where:

  • $$t_d$$ = doubling time (in periods)
  • $$r$$ = growth rate per period (as a decimal)

This formula is derived from the compound growth equation $$A = P(1 + r)^t$$, where we solve for the time $$t$$ when $$A = 2P$$.

Example Calculation

For a 7% growth rate per period:

  • Growth rate $$r = 0.07$$
  • $$\ln(2) \approx 0.6931$$
  • $$\ln(1.07) \approx 0.0677$$
  • Doubling time = $$\frac{0.6931}{0.0677} \approx 10.24$$ periods

So with 7% growth per period, your quantity will double in approximately 10.24 periods.

The Rule of 72

A quick approximation for doubling time is the Rule of 72:

$$
t_d \approx \frac{72}{\text{percentage rate}}
$$

For 7% growth: $$72 \div 7 \approx 10.29$$ periods, which is very close to the exact calculation.