# How Much Does A Penny Doubled Every Day For A Month End Up Being? (Penny Doubler Calculator)

**A penny doubled every day for the 30 days that make up an average month would amount to $5,368,709.12. This is obviously more than the $1,000,000 offered in the other option (see below).**

You can also try this yourself with your own amount and time with our Penny Doubler Calculator.

Imagine a scenario where a genie suddenly materializes before you, presenting two options for you to choose from:

Option one is receiving a penny immediately, with the promise of it doubling in value each subsequent day for a span of 30 days.

Option two is receiving a substantial sum of $1 million right away.

Which one would you choose?

It’s worth noting that the majority of individuals would likely opt for the immediate $1 million. However, this leads to an intriguing inquiry: what would be the final value if a penny were doubled every day for an entire month? We have provided a calculator at the bottom of the article that creates both a table and a diagram.

Surprised? Let’s find out how that could be possible. The pic below is taken from our Instagram account:

**Calculating how much a penny doubled every day for 30 days would amount to**

Now, if you take a penny on the first day of the month and double it on the second day and then continue doubling the value every day for the rest of that month (till the 30^{th} day), how much do you think you will end up with on the 30^{th} day?

You start with 1 penny and then, 2 pennies, 4 pennies, 8 pennies, 16 pennies…. By the end of the 30^{th} day, you end up with $5,368,709.12! Seems difficult to believe, right? Well, this is the power of compounding in action, and in this case, the rate is 100%, so staggering returns are expected.

**Penny doubled every day for 30 days – Table**

This table explains pretty well exponential growth:

Table:

Day | Amount | |

1 | Day 1 | $0.01 |

2 | Day 2 | $0.02 |

3 | Day 3 | $0.04 |

4 | Day 4 | $0.08 |

5 | Day 5 | $0.16 |

6 | Day 6 | $0.32 |

7 | Day 7 | $0.64 |

8 | Day 8 | $1.28 |

9 | Day 9 | $2.56 |

10 | Day 10 | $5.12 |

11 | Day 11 | $10.24 |

12 | Day 12 | $20.48 |

13 | Day 13 | $40.96 |

14 | Day 14 | $81.92 |

15 | Day 15 | $163.84 |

16 | Day 16 | $327.68 |

17 | Day 17 | $655.36 |

18 | Day 18 | $1,310.72 |

19 | Day 19 | $2,621.44 |

20 | Day 20 | $5,242.88 |

21 | Day 21 | $10, 485.76 |

22 | Day 22 | $20,971.52 |

23 | Day 23 | $41,943.04 |

24 | Day 24 | $83,886.08 |

25 | Day 25 | $167,772.16 |

26 | Day 26 | $335,544.32 |

27 | Day 27 | $671,088.64 |

28 | Day 28 | $1, 342,177.28 |

29 | Day 29 | $2,684,354.56 |

30 | Day 30 | $5,368,709.12 |

With this, you can see that if those traders on social media who claim to have a perfect trading system that is making ridiculous returns are actually making those returns, they would have been richer than Jeff Bezos trading for a few years.

As Jesse Livermore would say: “If a man didn’t make mistakes, he‘d own the world in a month. But if he didn’t profit by his mistakes, he wouldn’t own a blessed thing.” No one has a perfect system anywhere.

**Explaining the table**

One thing you can notice from the table is that the early days were boring. As of the 20^{th} day, the money wasn’t even up to $10,000. At that point, if you don’t understand the principle of compounding, you would have been angry for not taking the $1,000,000 option. But over the last 10 days, the money multiplied by more than 1000 times.

You see; patience pays because it takes time to grow wealth. As a matter of fact, time is one of the most important factors in compounding money, which is why it’s imperative that you start investing early to give your money time to grow. The growth at the later period is always astronomical. See the graph below:

## Penny Doubler Calculator

**The power of compound interest**

So, you have seen the power of compounding in action. You could see how the penny compounded to over $5 million in 30 days, so it’s better to have a single penny that doubles every day for 30 days than take $1 million upfront.

Mathematically, you can calculate that with compounding formula:

A = P [1 + (rate)] ^ time

In this case:

- P = 1 penny
- Rate = 100%
- Time = 29 days (because day 1 produced our P, so the compounding starts from day 2)

A = 1 [1 + (1)] ^29

A = 1 [2] ^29

A = 536, 870, 912 pennies = $5,368,709.12

As you can see, the main factors in compounding are the rate and the time. If the rate wasn’t 100% (doubling) or the compounding period and duration weren’t daily for 30 days, the money may not compound to that amount. For example, if the question was to increase the penny by 50% every day for 30 days, you would have only $1, 278.34. Or if it was to double the penny daily but for only 20 days, you would have $5,242.88.

**Using the Rule of 72**

Obviously, you can’t double your money every day when investing; no investment offers that kind of return. Most investments offer a single or low double-digit rate of return. So, you may want to know how long it will take to double your investment. You can do that with this simple method called the Rule of 72.

**72 / Annual Return = Years to Double Initial Investment**

You simply divide 72 by your annual rate of return on investment. That gives you the number of years it will take to double your initial investment

For example, if you invested $20,000 today at an 8% annual rate of return, it would take 9 years for that investment to be worth $40,000. It’s easy and interesting, right? The thing about investment is that at the early stages, it takes time to grow, but later on, it grows faster as the capital accumulates. In 27 years this investment would be worth about $160, 000. This is how wealth is built over your life.

**Trading Strategies**

Trading strategies often involve the careful consideration of compounding returns, and the scenario of doubling a penny every day for a month provides a compelling illustration.

Starting with just one cent, the power of compounding results in exponential growth. If a penny is doubled each day, the total rapidly escalates, reaching over $5 million by the end of the month. This concept underscores the importance of patience and the compounding effect in trading.

In a similar vein, traders might seek strategies that capitalize on consistent, incremental gains, allowing the power of compounding to work over time. However, it’s essential to note that while this hypothetical scenario highlights the potential rewards of compounding, trading also involves risks, and careful risk management is crucial in live trading.

Thus, this lesson of doubling a tiny per day shows the value of a long term mindset in both trading and investing!

**The key lessons**

The key lesson from this is that you should start investing early and often. Another one is to be patient with your investment: the biggest gains and returns always happen later in life. Make it a habit to invest a certain amount each year, even if it is in passive investments, such as mutual funds or ETFs.

## FAQs

**How can I double my money?**

There are various ways to double your money, including investing in stocks, bonds, real estate, or starting a small business. It’s essential to consider your risk tolerance and investment horizon when choosing the right strategy for you.

**How long does it take to double my money using compounding?**

The time it takes to double your money through compounding depends on factors such as the rate of return and the frequency of compounding. The Rule of 72 is a helpful tool for estimating how long it will take to double your investment based on your expected rate of return.

**How can I avoid falling for investment scams promising to double my money?**

To avoid investment scams, be cautious of high-pressure sales tactics, promises of guaranteed returns, and investments with unclear or vague details. Always conduct due diligence, verify the credentials of the investment provider, and seek advice from a trusted financial advisor.