What is the 'Rule of 70' in finance?

Dharini Mudgal, Published on Jan 27th, 2026

What is the 'Rule of 70' in finance?

The 'Rule of 70' is used to estimate the future buying power of money. Dividing 70 by the inflation rate shows how many years it'll take for the rupee’s value to halve, reported ET. For example, at 4% inflation, something that costs ₹100 today would cost about ₹200 in 17.5 years, meaning rupee would lose half of its purchasing power.

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