The Rule of 144, similar to the Rules of 72 and 114, helps estimate how long it will take for your investment to quadruple in value. By dividing 144 by the expected rate of return, you can get an approximate idea of the time needed for your money to quadruple.
Quadrupling Time = 144 / Rate of Return
For example, if you invest ₹1,00,000 with an expected annual return of 10%:
Quadrupling Time = 144 / 10 = 14.4 years
This means your investment is expected to quadruple in 14.4 years. Note that this rule applies to investments with compound interest.
If you want your investment to quadruple in 6 years, you can calculate the required rate of return:
Rate of Return = 144 / Quadrupling Time
For 6 years:
Rate of Return = 144 / 6 = 24% per annum
This formula is useful for estimating either the time needed for your investment to grow fourfold or the interest rate required to achieve it.